Don't Ignore This Chart

February 2015

Don't Ignore This Chart

Mylan (MYL) Moves Higher

by Greg Schnell

Mylan (MYL)  is a strong chart technically and the price action this week is pretty interesting.  Mylan had a nice surge from October to November moving 30%. After building a consolidation pattern sideways, Mylan pushed up against resistance late last week. After a brief pullback, Mylan is breaking above resistance today.  With the SCTR pushing back above 75, the stock is behaving very well and outperforming 75% of its peers. We can see the relative strength in purple has started to accelerate as well. Good trading, Greg Read More 

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Euro ETF Gets a Continuation Signal

by Arthur Hill

After consolidating for four weeks, the Euro ETF (FXE) is making a bid to continue its downtrend with a break below consolidation support. The bottom chart shows FXE forming a triangle after an extended decline. This is a consolidation within a downtrend and it represents a rest within that trend. Today's break signals a continuation of the long-term downtrend. The top chart shows the US Dollar ETF (UUP) making a bid to break triangle resistance and continue its uptrend.  Read More 

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Intel Battles Gap and Relative Performance

by Arthur Hill

Intel is having a tough time this year. In fact, Intel (INTC) has been having a tough time since early December. The stock peaked around 37.5 in early December, formed a series of lower highs into mid January and then gapped down in late January. This gap-plunge broke support and the break is holding as broken support turns resistance. The February bounce formed a rising flag and a break below 33.5 would signal a continuation lower. The indicator window shows the price relative (INTC:SPY ratio) breaking down in late January and hitting a multi-month low this week. Read More 

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Gold Gets a DP Trend Model SELL Signal

by Erin Swenlin

It was bound to happen. Gold has been struggling with a correction that began when price failed to reach the August 2014 high. The intermediate-term DP Trend Model generated a SELL signal today when the 20-EMA crossed below the 50-EMA. Since the 50-EMA was below the 200-EMA, it created a SELL signal. If the 50-EMA is above the 200-EMA, we consider it to be in a "bull market" and consequently we want our model to reflect that by going on a Neutral signal rather than a SELL. The only reason the signal took so long to arrive was that the previous rally had helped the 20-EMA put some real Read More 

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Bristol Myers Gets a Histogram Signal

by Arthur Hill

Bristol Myers (BMY) is making a bid to turn back up and bounce off support. On the price chart, the stock firmed above the December-January lows in February and moved to its highest level of the month today. The indicator window shows the MACD Histogram turning positive, which means MACD moved above its signal line. This is the first sign that momentum is improving.  Read More 

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Has Taser Corp (TASR) Got Your Back?

by Greg Schnell

Taser Corp (TASR) is one of the most controversial stocks on the exchange. The maker of taser units for police forces worldwide rarely enjoys positive press. The company has been diversifying their product line and the stock is currently building a nice bullish triangle. Looking through the indicators, the SCTR is over 95% and has been there for months so that is a real strong indicator of a great stock. The relative strength shown in purple continues to push higher.  The MACD is really interesting here. After making a huge bullish run from July to Read More 

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Pre-defined Technical Alerts Continue Green

by Arthur Hill

Chartists can regularly check the Pre-defined Technical Alerts page for clues on market trends. Green alerts dominate the last three days and these green alerts come from the stock market. Just today, the Russell 2000 hit an all time high and the Nasdaq hit a 4-year high. Multi-year highs occur in secular uptrends.  Click this image to visit the Technical Alerts page  Read More 

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Cybersecurity - Where To Start Investing In This Industry Group

by Greg Schnell

The cyber-crimes business seems to be very profitable. The recent bank attacks taking more than $300 Million from banks all over the world really helps to frame how big the issue is. Defending against this, called cybersecurity, seems to be profitable too.  I am not a biotech specialist but I understand higher highs and higher lows. The diversity within the biotechnology scientist dominated field is immense. Without studying the individual components of this industry, we can study the ETF to understand what is going on. Here is a link to Biotech iShares (IBB). We Read More 

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Don't Put Gentex in your Rearview Mirror

by Erin Swenlin

I did one of my favorite scans today and it produced a little known company (among others) called Gentex Corp (GNTX). I actually had to look up what their business was about. Interestingly, they manufacture auto-dimming rearview mirrors. I wanted you to see this chart regardless of its obscurity because it looks very bullish. What the future holds for GNTX is uncertain, but it's definitely worth a look. GNTX came up on my scan that pulls stocks with new 5-EMA crossover 20-EMA and new Price Momentum Oscillator (PMO) positive crossover. Additionally the stock needs to be in a "bull market" Read More 

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S&P 500 ($SPX) Joins The 2015 Worldwide Chorus Of New Highs

by Greg Schnell

For Valentine's Day, the market shared its love by pushing the broad S&P 500 ($SPX) to new intraday highs. Germany, Australia, France, Thailand, Indonesia, Shanghai, India and The Netherlands have all made new 52 week highs in 2015. The Nasdaq Composite ($COMPQ) also made new highs earlier this week with lots of the large cap tech stories driving higher. With the $SPX up almost 5% this looks like a sign that the new investments are rotating away from the defensive sectors into the offensive sectors. We have also broken out of the range near 2060. While we Read More 

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InterActive Corp Shows Signs of Accumulation

by Arthur Hill

Interactive Corp (IACI) has turned rather volatile this year with a choppy trading range between 59 and 64. The stock gapped down to range support last week, but immediately firmed and surged off support with good volume. IACI is now in the process of filling the gap and a break above the January highs would be bullish. The indicator window shows the Accumulation Distribution Line moving above its early December high. This points to accumulation in 2015 and increases the odds of a breakout.  Read More 

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Google (GOOGL) Gets Ogled

by Greg Schnell

Google (GOOGL) recently dropped the Google Glasses project at least for the time being. However, that does not mean everyone stopped looking at the company as an investment. Google has been out of favour as a stock for a while but recently a simple basing pattern has been building. There has been extensive price action in the stock in the $500- $540 range. What I find particularly interesting is the high volume on the right shoulder of a basing pattern.  Arthur covered GOOGL on his Tuesday webinar. He suggested a move through $540 should do the Read More 

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Micron (MU) Surges Off Support

by Greg Schnell

Micron (MU) has been oscillating near support for a month. Today it surged almost 10% completing a small basing h/s pattern. The impressive rally also had 43 million shares trading with an average trade of 25 million. With the indicators on the low side and a lot of technical breakouts on the move today, the volume suggests a lot of people are interested in this stock going higher. This was the largest up day on big volume since the volume burst off the October lows. The Semiconductor Industry Group is in the green zone on the RRG so that is also supportive. Read More 

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Alibaba (BABA) Plants A Doji Near Support

by Greg Schnell

Alibaba (BABA) has been here before. After a month long pullback on the IPO, Alibaba broke out for a 40% gain. After slowly winding back, BABA gapped down on earnings and has come down to test the previous low. While Alibaba has intraday moves below $85, it has only had one close at $84.95. That was the lowest close for Alibaba. So that brings today's chart into play. Today's intra day range was so tight that it generated a very short low range doji. This is the lowest area of closes on the chart. I used the new volume by price feature to define the total volume at Read More 

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Akamai Forges Candlestick Reversal at Key Retracement

by Arthur Hill

It has been a rough year for Akamai (AKAM), but the decline over the last few months looks like a classic correction. After hitting a new high in late November, the stock retraced 50-62% with a decline to the 57-58 area. This retracement amount is typical for a correction within a bigger uptrend. The stock affirmed support here by forming a hammer on February 2nd and surging the very next day. This surge confirmed the hammer and the short-term trend is up. AKAM is now challenging the late January high and a breakout here would suggest that the correction is ending and the bigger Read More 

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PixelWorks (PXLW) Starts To Accelerate

by Greg Schnell

I just wanted to post an interesting chart of Pixelworks (PXLW) that showed up on the "Nasdaq Percentage Up" list from the home page. This chart is particularly interesting. The stock had a beautiful run up from $2 to $9 and then retraced. The stock has started to rally since the new year started. This week it reached up to the 40 WMA which is an interesting place to start looking for longer trends. The stock has a nice high weekly volume of 3.5 million which works out to 750,000 shares a day.  Every now and then, its nice to look at the small caps especially Read More 

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Netflix (NFLX) Approaches The Climax Of This Plot

by Greg Schnell

Whew, Netflix (NFLX) has been an action thriller. In the last year, the roller coaster stock price is on its 5th move of at least $120. Nothing like a plot that takes your emotions both ways! The real question is what is going to happen now. First of all, the current price action as it approaches the same price as the top on the left side is important for pattern watchers. When we get this structure of a potentially lower peak on the right side, we are worried about a head/shoulders top. The cautionary news is that the stock also has to reach this price in order to move to Read More 

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Technical Ranks Surge for Walgreen and GM

by Arthur Hill

The image below shows a screen shot from the home page with SCTR tables for large-caps and ETFs. The "top up" tab was selected to focus on the biggest gainers. Notice that the StockCharts Technical Rank (SCTR) for GM moved above 50 and the SCTR for Walgreens moved above 70. Both are showing relative strength this week. The ETF table shows the China Tech ETF (CQQQ) with a big surge in relative strength. You can read more about the StockCharts Technical Rank (here).  Read More 

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The Noose Tightens on Monsanto

by Arthur Hill

Monsanto (MON) could be poised for a volatility expansion because BandWidth has narrowed over the last few weeks and volatility has contracted signficantly. The BandWidth indicator tells us that the difference between the upper and lower Bollinger Bands is less than 4%, which is relatively low. John Bollinger theorized that a volatility expansion follows such a contraction, but this contraction does not give us a directional bias. The chart sports a diamond consolidation over the last few months and chartists can watch this consolidation for a breakout to get a jump on the next Read More