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Jacobs Engineering (JEC) Is Building A Nice Chart

by Greg Schnell

Jacobs Engineering (JEC) has been correcting for almost 2 years. Recently, JEC broke above a basing pattern and is now back above the 40 WMA. The indicators are showing a nice trend developing. The SCTR ranking shows Jacobs performing in the top 10% of all Large Cap stocks.  The Relative Strength trend is breaking out to fresh 16 months highs. On the price plot, we can see the stock surged 4 weeks ago, and then consolidated for three weeks. The volume has been very strong for weeks suggesting institutional accumulation and the PMO continues to climb.  When I reviewed Read More 

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Biogen Cure For 200 DMA Blues

by Greg Schnell

After a year of lower prices for Biogen (BIIB), this week marks a nice rally that could signify the start of a changing trend. Biogen had a massive surge to $480 in the spring of 2015. In a great example of a tweezer top (two huge candles reversing each other), Biogen rolled over. In early July 2015, it sold off in a big way. The huge bar pushed it down below the 40 WMA expressed in this article title as the 200 DMA. 40 weeks x 5 days/week = 200 Daily Moving Average. The close on Friday marked the highest weekly close in 5 months as well as a push above the 40 WMA in lime green Read More 

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Two Oil Stocks You Might Want To Consider

by Tom Bowley

The Dow Jones U.S. Exploration & Production Index ($DJUSOS) is 39% higher since its January low and two mid-cap stocks that are outperforming include $4 billion QEP Resources (QEP) and $2.9 billion WPX Energy (WPX).  They have both been overbought recently and now have printed negative divergences, but their relative strength, along with solid SCTRs suggest they could be bought on pullbacks.  Both charts are similar, so let's focus on one example - QEP: The pink arrows are typically what I look for in terms of retracement after a negative divergence prints Read More 

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SCTR Rankings Are Strong On US Listed Canadian Bank Stocks

by Greg Schnell

Canadian bank stocks are all high up the large cap SCTR ranking tables. RBC (RY) is Canada's largest bank. The SCTR pushed up on the back of the Fed minutes but it was working up there in April before the financials surged this week. The volume on a weekly basis is a little below average. The MACD is nice and high and the dividend yield is 4%. Other Canadian bank stocks also have strong SCTR's and are listed on both exchanges. All five of the Canadian banks are in the top 10 large cap bank SCTR rankings. Here are some of the SCTR rankings. Read More 

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SunTrust Faces Technical Moment Of Truth

by Tom Bowley

SunTrust Banks (STI) looks very bullish on a longer-term weekly chart, awaiting a critical technical breakout.  But on its daily chart, there are signs of slowing momentum and overbought conditions as price resistance nears.  So what's a trader to do?  Well, let's look at the two charts beginning with the big picture: The longer-term pattern is a very bullish inverse head & shoulders pattern that would fully develop on a pull back from the current price level.  The pattern would then confirm on a high volume breakout above 44.00-44.50.  Given that longer-term Read More 

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Two Steps Forward and One Step Backward for Ford

by Arthur Hill

Ford is making a big statement today with a successful test of the 200-day moving average and a break above the mid May high. The chart shows Ford (F) surging in February for its first breakout at 12. After exceeding 13.50, the stock retraced 50-62% with a pullback to the 12.25 area. A higher low formed as Ford again surged and forged a higher high in April. The subsequent pullback again retraced 50-62% of the April advance and the stock bounced the last four days. With higher highs and higher lows, there is a clear two steps forward and one step backward sequence over the last few months Read More 

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IBB Bounces Off Support

by Greg Schnell

The Healthcare sector has been out of favor and the Biotech ETF (IBB) was tossed into the bonfire with the rest of the sector. The SCTR is still demonstrating that the IBB is one of the worst performing ETFs in the market. So the real question is: Why would we post it in the Don't Ignore This Chart blog? I keep a watchlist of biotech stocks and in the last few days, there have been significant moves in the biotech stocks. We can see the Relative Strength in purple is testing the trendline from the beginning of January. The price has bounced off support 3 times around this 250 level Read More 

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The Next Big Tech Stock to Watch for a New High

by Arthur Hill

Stocks hitting 52-week highs are in clear uptrends and they are the market leaders. I am not going to feature a stock hitting a new high today, but rather look at one that has a good chance of hitting a new high in the coming weeks. The weekly chart below shows Cisco (CSCO) with a resistance zone extending back to the February 2015 highs. A break above this zone would put the stock at a 52-week high and be quite bullish. The indicator window shows the price relative with a similar resistance zone. A break above this zone would signal a breakout in relative performance. I will next Read More 

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This Small Semiconductor Stock Has A Big Chart

by Tom Bowley

A little more than three weeks ago, a very small $435 million semiconductor company reported quarterly EPS that nearly tripled Wall Street consensus estimates.  Quarterly revenues also beat estimates by roughly 3%.  That combination sent Nanometrics (NANO) soaring on April 27th, at one point up 20% on the session.  NANO became overbought at that point and has spent the past few weeks consolidating with its RSI falling from 80 to nearly 50.  The top of gap support at 16.99 and price support at 16 should offer up an excellent reward to risk long entry should the price of Read More 

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Dorman Bounces Off Flag Support

by Tom Bowley

Dorman Products (DORM) touched price support near 51.00, which is technically significant as DORM has been trading in a continuation pattern for the past several weeks and 51.00 has marked flag support.  There was a prior uptrend (flag pole) in play off the February low and DORM longs have been patiently awaiting the next push higher.  Unfortunately, the flag has been dominating the action and frustrating traders since the March 21st high.  Here's a look: The flag and sideways consolidation began after a negative divergence printed in March.  This period of Read More 

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QualCom Battles Two Key Moving Averages

by Arthur Hill

QualCom has been going nowhere since early March, but a breakout may be in the making as the stock distances itself from two key moving averages. The chart shows QCOM with the 50-day and 200-day SMAs in the 51-52 area. The stock has bounced between 50 and 53 since early March and formed a long triangle consolidation with these moving averages in the middle. The stock caught my eye today because it surged to resistance with a strong move. A breakout here would signal a continuation of the February surge and put QCOM in a long-term uptrend. The indicator window shows the price relative Read More 

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Diamond Offshore Drilling (DO) Starts Floating

by Greg Schnell

After a severe, correction going on 2 years, Diamond Offshore Drilling (DO) has built a nice big base. With Crude Oil approaching $50, the sentiment against oil seems to be losing energy. These big bases are important in the stock trend. Anyone who bought since last July is breakeven or better. We can see the SCTR ranking is stubbornly strong up around the 75 level. The Relative Strength line in purple is trying to break out to 10 month highs. Both of those traits are bullish. ​The volume seems to be losing a little momentum here but still in the range of 2 Read More 

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Semiconductor SPDR Bounces off Key Moving Average

by Arthur Hill

The Semiconductor SPDR (XSD) is one the leading industry-group ETFs at midday on Monday with a gain of around 2%. A look at the chart shows this big gain coming at a potential support or reversal zone. First, notice that XSD broke resistance with a big move in February. Broken resistance turns into potential support in the 41.50 area. Second, the April-May decline retraced around 50% of the February-March advance. This is a typical retracement for correction within a bigger uptrend. Third, notice that the 200-day moving average is around 41.3 and fits into this support-reversal zone.  Read More 

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Huntsman (HUN) Pulls Back To Key Support Zone

by Tom Bowley

Not many stocks have been spared the past few weeks as our major indices have trended lower.  Huntsman Corp (HUN) doubled in a little more than two months, but became very overbought in late April.  Since that time, HUN has fallen 15% and its overbought oscillators have seen relief with the RSI and stochastic now at 44 and 14, respectively.  Volume was quite strong on the breakout above 13.50-13.60 gap resistance and has subsided on the recent selling.  Finally, HUN has tested price support and reached its 50 day SMA for the first time since crossing above it Read More 

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Have You Met Your Match? (MTCH)

by Greg Schnell

This investing business is a fickle world. Trying to find the right stock at the right time to stay invested in is hard work. Well, the world of relationship matching is also a world of right place, right time synergy. Match Group (MTCH) operates 45 relationship networks to help solve the lust for love. This company recently IPO'd and the stock is starting to behave a little better after an initial decline. On Thursday, the stock tried to take out the previous high and is pulling back today. The Relative Strength, shown in purple, is breaking to new three-month highs. The volume is Read More 

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Looking To Find Healthy Stocks During Pullbacks? Consider This Scan

by Tom Bowley

Overbought stocks frequently move above RSI 70, but during periods of selling or consolidation, it's fairly routine to see the RSI dip back to the 40-45 area.  Here's a simple scan from the Standard Scan Workbench to find stocks that could be great trading candidates (from a long's perspective): I used average volume of "> 300,000" to ensure I was getting liquid stocks that trade frequently.  The other highlighted numbers show that stocks had to have had an RSI reading of at least 70 fifteen trading days ago.  With RSI now between 40-45, it ensures that the stock has Read More 

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Retailers Weigh on Consumer Discretionary Sector

by Arthur Hill

The EW Consumer Discretionary ETF (RCD) got a bounce off support Monday-Tuesday, but gave it all back on Wednesday and broke support with a sharp decline. The chart shows the ETF forming a lower high in April and ultimately breaking support on Wednesday with a gap down. This makes for a lower low and a downtrend in RCD. The indicator window shows the price relative forming a lower high in late March and breaking to new lows in late April. This relative performance indicator moved to new lows again this week and consumer discretionary is the weakest sector in the market right now.  Read More 

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Amazon (AMZN) Delivers New Highs

by Greg Schnell

Amazon (AMZN) continues to another all-time high today. This stock continues to work higher. After writing about Amazon in January, AMZN dropped another $100 / share. Today it looks to close at new all-time highs. The conviction required to own these stocks with wide swings is part of investing in Technology companies. The growth is accelerating in the Amazon Web Services business and the retail delivery business continues to expand. Looking at the broader index tracking ETF's like DIA and SPY, the next few days will mark breakouts to new highs if Read More 

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Shanghai Composite Breaks Support after Weak Retracement

by Arthur Hill

The Shanghai Composite ($SSEC) took a hit on Monday and closed below support from the April low. This move is reversing the counter-trend bounce and signaling a continuation of the bigger downtrend. $SSEC is in a big downtrend with lower lows and lower highs since the initial breakdown in June 2015. There was a counter-trend bounce in the second half of 2015 and the January breakdown reversed this four month upswing with a sharp decline in early January. After hitting a 52-week low in late January, the index bounced back with a move above 3000 in April. The move does not look that strong Read More 

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This Is How You Hammer Out A Bottom

by Tom Bowley

Children's Place (PLCE) printed a reversing hammer on Friday just after touching gap support at 70.51.  This comes off a lengthy downtrend that began in mid-April after a negative divergence had developed.  Take a look at the technical picture on a daily chart first: Adding further bullishness is the set up on the weekly chart where PLCE shows very strong momentum and just tested its rising 20 week EMA.  Take a look: Normally a 20 period EMA test with a strong MACD represents solid reward to risk entry.  The 20 week test, together with a test Read More 

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Activision ATVI Launches On A Call Of Duty : Heroes

by Greg Schnell

ATVI - Activision announced a positive response to the Call Of Duty : Heroes software release. After a fantastic 2015 (100% gain), ATVI took a short break in the uptrend. Now, it looks to be resuming it's investor enthusiasm. With the SCTR back above 75, the Relative Strength breaking out to new 3 month highs, and the MACD turning up again from above zero, this looks good. The price action looks to be mimicking last year. In 2015, ATVI bounced from a low early in the year. In early May, the stock popped and really moved for the rest of the year. Here we sit in early May 2016 with a Read More 

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Which Way Is The Market Heading? Ask Apple

by Tom Bowley

Apple (AAPL) is the most influential stock considering all its branches and its psychological effect, not to mention its $510 billion market cap.  But all is not well technically for AAPL and we're going to soon find out if it can hold support and resume its uptrend or if it potentially has much more downside to go.  Why?  Because the 93.00 level has been excellent support for the past few years.  In September 2012, AAPL had an intraday high of 93.11.  It took nearly two years for AAPL to climb back up to test that 93.00 resistance before finally breaking through Read More 

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VeriSign Whiffs with a Big Bearish Engulfing

by Arthur Hill

There are bearish engulfing patterns and then there are BEARISH ENGULFING patterns. VeriSign formed the latter with one of the biggest I have seen in some time. The chart shows the bearish engulfing pattern opening above the April high and finishing near the early March low. The stock got a small bounce off the support level and then moved lower on Thursday. A break below support would confirm the bearish engulfing and signal the start of a downtrend. I would consider this support break valid as long as the stock remains below 88.50 (red line). The indicator window shows the price relative Read More 

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iRobot (IRBT) Moves To The Next Floor

by Greg Schnell

Having a Roomba has been a simple pleasure. Roomba is a robotic vacuum for your home so you can golf instead of vacuum. iRobot (IRBT) is the parent company. The company has an interesting chart this week. After spending two years in a subtle downtrend, IRBT recently started perking up. The SCTR (small cap) ranking topped 75 in December, recently pulled back and now seems to be resuming its outperformance. The price made the highest weekly close in 16 months and the MACD shows the momentum at 2-year highs. There are some intra-week resistance levels at $38, but this might be the Read More 

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Three White Soldiers or a Bear Flag for TLT?

by Arthur Hill

The first week of the month is always a big week for Treasury bonds and the 20+ YR T-Bond ETF (TLT). There are always a slew of key economic reports and the employment report is usually the first Friday of the month. I am not going to get into the economic quicksand, but I will take a stab at the price chart for TLT. First, the bigger picture shows a steep advance from late December to early February and a large triangle consolidation. A consolidation is usually a continuation pattern and this means a breakout near 132 would signal a continuation of the prior advance.  Triangles don't Read More