Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

Can The Deere Start Running Again?

by Greg Schnell

There's been a nice surge in the Commercial Vehicles group over the past month. One of the leaders in the group is Deere & Co. (DE) which outperformed all of 2017 and consolidated through 2018. This week's price action on Deere looks like the highest weekly close in 9 months - and there are a few other technical clues that suggest there is more to come.  In November 2016, Deere broke out to a new 12-month relative strength highs compared to $SPX. That initial clue started Deere on a run, doubling the stock price. It continued to outperform - the SCTR ranking shows Read More 

Don't Ignore This Chart

Long Tail And Strong RRG-Heading For IRM

by Julius de Kempenaer

The Relative Rotation Graph above highlights the rotation of IRM (Iron Mountain Inc.) in comparison to the other stocks in the S&P Real-Estate sector (XLRE). The sector itself is interesting to keep an eye on as it is positioned well inside the leading quadrant but rolling over, at high JdK RS-Ratio levels, on the weekly RRG. But it is inside the lagging quadrant and curling up on the daily RRG.  This setup suggests a longer-term (weekly chart) relative uptrend that goes through a pause/correction (daily chart). Assuming that the weekly trend is providing the Read More 

Don't Ignore This Chart

Palo Alto Networks Breaks from the Pack

by Arthur Hill

Most stocks have struggled since November, but Palo Alto Networks managed to reverse at a key area and break above a resistance zone. The chart below shows PANW with weekly bars over the last 3 years. The stock broke to new highs in February 2018 and more than doubled from spring 2017 to autumn 2018. Notice how the stock recorded numerous 52-week highs from January to August 2018. Stocks recording 52-week highs are leading the market and attracting attention. The gray lines show the 52-week price channel to mark the 52-week high-low range. The blue zone marks a Read More 

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The Science Of Going Higher

by Greg Schnell

Edwards LifeScience (EW) had a big move this week - having been inside a trading range for most of 2018, EW is now testing the top of the consolidation. I have omitted the few days it experienced above the range as the stock gapped up, went on a euphoric surge and then gapped lower, quickly putting it back inside the range. The stock was ultimately up 20% last year, even though it was near the bottom of the range at the start of 2019. The SCTR shows the stock is very strong relative to other large-cap stocks, having spent most of 2018 above 75. Tuesday's high Read More 

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Coca-Cola Loses Some Fizz

by Arthur Hill

Stocks surged over the last 12 days with the S&P 500 gaining over 10% and moving above its late December high. Coca-Cola (KO) was leading the market with a new high in November, but did not partake in the broad market rally here in January. SPY is up around 3.63% year-to-date, but KO is flat for the year. Moreover, a bearish continuation pattern is forming on the chart. The price chart below shows KO breaking support with a sharp decline in the second half of December. The stock consolidated after this breakdown as a pennant formed. A consolidation after a sharp decline is a bearish Read More 

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Is General Motors Ready To Fire On All Cylinders?

by Greg Schnell

General Motors had a great week. The real question is whether it can fire on all cylinders? I like the chart as the whole industry group had a great week. This stock pays a 4% dividend! Hunting through the indicators, the SCTR suggests the stock is moving into the top quartile in price performance. The relative strength is is breaking out to six month highs which is a nice bullish trait. I particularly like the weekly full stochastic turning up just below 50. That can also be a bullish signal. One signal that looks particularly compelling is the PPO is also breaking a one-year Read More 

Don't Ignore This Chart

This DOW stock is pushing to new relative highs and rotates back into the leading quadrant on the Relative Rotation Graph

by Julius de Kempenaer

Visa is showing up, just, inside the leading quadrant on the Relative Rotation Graph vs $INDU above. These images are zoomed in from the RRG holding all the 30 DJ Industrials stocks (benchmark $INDU). The tail in the chart on the left above shows 30 weeks of rotation and as you can see the week-to-week observations are all close together (the white dots on the tail) causing a relatively short tail compared with other stocks on the plot. Short distances on the tail indicate low strength(momentum) and as the rotation was pointing downward Read More 

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Netflix Leads the FAANGs as Facebook Quietly Outperforms

by Arthur Hill

Netflix was the first of the five FAANG stocks to peak in June 2018 and is now the first of the five to break its December high. Thus, Netflix is leading the FAANGs here in January because it is the only one with a higher high. Note that Netflix reports earnings next week (January 17th). The price chart below shows when all five peaked in the summer-fall. Netflix was first in June, Facebook and Alphabet followed in July, Amazon peaked in early September and Apple was the last to peak in early October. The vertical blue line marks the peak in the S&P 500 for reference. Google had the Read More 

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This Stock Hit New 3 Month Highs

by Greg Schnell

This pipeline business is a stable cash flow generator that also pays a healthy dividend of 6%. Enbridge is a large North American pipeline company with some projects in the works that should come on stream in 2019. Looking at the setup, the SCTR is suggesting the price action is better than most of the stocks with a reading of 88. The relative strength made new 10 month highs. Price popped to a new 3-month high after capitulation selling volume marked the lows. On the weekly chart it looks good too. That nice fat dividend on Enbridge is worth looking at Read More 

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VerSign Holds One Key Moving Average and Retakes Another

by Arthur Hill

The broad market environment remains rather negative overall with the S&P 500 well below its falling 200-day SMA and volatility increasing over the last few months. Note that the different environments were highlighted in ChartWatchers this weekend. After a sharp decline into Christmas, stocks rebounded over the last two weeks and this rebound remains in play. As such, I will focus on a bullish setup today. Also note that earnings season starts soon. VeriSign (VRSN) surged to a 52-week high with a big gap in early November and then corrected over the last two Read More 

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