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Bank Of America (BAC) Is Technically Concerning

by Greg Schnell

The banks have been rocking as they have been surging since last summer. In the last few months they have paused their rally. Since they announced earnings, they have not really rallied. This week had a nice pop but the real question is can they continue? While history can be a potential guide, it is important to realize the perilous clues on the chart as they form. Whether they play out is yet to be seen, but this is a situation that shows up near tops.  Bank of America (BAC) has some concerning technical signals. Lowering momentum on the higher peak is a Read More 

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Exact Sciences Corp Posts Solid Results, Completes Right Side Of Cup

by Tom Bowley

On Thursday morning, Exact Sciences Corp (EXAS) was the #1 percentage gainer on the NASDAQ, rising nearly 26%.  While that's a massive move by any measure, I doubt that the move higher in EXAS has ended.  If you look at a weekly chart, you'll see that yesterday's gain in EXAS actually completes (or nearly completes) the right side of a very bullish long-term cup with handle pattern.  Take a look: Those big gains yesterday simply took EXAS back to where it was in early 2015.  I'd expect to see consolidation over the next several weeks, but ultimately a breakout that Read More 

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Dell Technologies (DVMT) Pushes Up Out Of Consolidation

by Greg Schnell

Dell Technologies (DVMT) was a recent IPO out of Dell and EMC. Here is the chart. With the technology stocks trading so well, this chart continues to climb. The volume is a little obscured by the 40 Million share candle. The average daily volume is a little clearer in the zoom box on the right, showing around 1.4 million shares. The momentum is starting to turn up again.  Good trading, Greg Schnell, CMT, MFTA.   Read More 

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Vodafone and Cable Could be Bottoming

by Arthur Hill

Even though Vodafone remains in a long-term downtrend, the stock has been on my watch-list recently because it could be putting in bottom. Analysis of Vodafone and other ADRs is not straight-forward because there is a currency component. Usually, the movement of the stock is more than enough to compensate for any adverse currency movements, but the British Pound took a big hit in June and this adversely affected the stock. Today, I will first look at Vodafone in British Pounds (VOD.L) and then Vodafone in Dollars (VOD). I will then look at Cable (Pound-Dollar cross) and the British Pound Read More 

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Caterpillar (CAT) Breaks Out On Earnings

by Greg Schnell

Caterpillar (CAT) broke out on earnings today. Let's look at the chart. This chart absolutely launched above resistance. The SCTR soared to 93, the Relative Strength pushed to new 4-month highs.  This chart looks very strong. Finning (FTT.TO) is the world's largest Caterpillar dealers in the world. This chart has only pulled back from $27 to $23. Today looks like solid confirmation of CAT's breakout. Nice to see the confirmation. This uptrend looks like it is resuming. Good trading, Greg Schnell, CMT, MFTA.  Read More 

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EuroTop 100 Hits New High, but Still Not Outperforming S&P 500

by Arthur Hill

The Eurotop 100 Index surged over 2% and hit a new high to affirm its current uptrend, which began with the breakout and golden cross in early December. The index established support around 2900 over the last two months and this is the first area to watch going forward. A break below this level would be negative and suggest that a correction is beginning. Even though the index is at a new high, it is still performing in-line with the S&P 500 over the past year. The indicator window shows the price relative falling into June 2016 and then flattening over the last ten months. The top Read More 

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HON Climbs With An Earnings Pop On High Volume

by Greg Schnell

Honeywell (HON) had a nice earnings report that popped the stock after a shallow pullback.  This price move generated signals on various indicators. The SCTR surged above 75 and the Relative Strength surged to new 9 month highs. The price action made a new intraday high and broke out from a shallow downtrend. The volume climb was significant with 10 Million shares in 2 days. For the educational segment, we can use the SCTR to evaluate which industry groups are performing better. The higher the number, the better the ETF performance.  Read More 

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Dycom Breaks Cup Resistance With Strong Volume

by Tom Bowley

Our major indices have been consolidating for many weeks and that's enabled many individual stocks to consolidate in bullish continuation patterns.  Dycom Industries (DY) is one such stock as it formed a long-term cup from early-August to late-February before printing a handle throughout March.  The right side of the cup showed very heavy volume before volume tailed off as the handle formed.  This week DY has broken out on extremely heavy volume as you can see below: The blue arrow shows that volume is about double of any week over the past six weeks and there's Read More 

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Etrade Corrects into Fibonacci Cluster

by Arthur Hill

It has been a rough year for small-caps because the Russell 2000 iShares is up just 1.34% year-to-date and severely trailing the S&P 500 SPDR, which is up around 5.5%. Chartists looking for clues of a small-cap revival may want to watch E-Trade Financial (ETFC) and the other discount brokers (SCHW and AMTD). I will focus on ETFC today because it is currently correcting within an uptrend. An end to this correction could signal a return to animal spirits and a small-cap revival. First and foremost, the long-term trend is up because the stock hit a 52-week high in January and the 50-day Read More 

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Aflac (AFL) Quacks Out A New High - Members Dashboard Tip

by Greg Schnell

Some commercials are more memorable than others. As soon as we are reminded of the word Aflac, we immediately think of the white duck in a bizarre situation screaming AFLAC ! Without question, the commercials work for brand recognition. However, today the Aflac stock broke out to a new 52-week high from a nice consolidation.  This chart has lots of similarity to the Japanese Yen chart. I found this article on the company. They insure 1 in 4 Japanese households. So a rising Yen helps Aflac, a falling Yen hurts Aflac. Now that the Yen is Read More 

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Industrials SPDR Becomes Oversold and Finds Support

by Arthur Hill

The Industrials SPDR (XLI) is at an interesting juncture because the long-term trend is up and it is testing the January breakout. After hitting a 52-week high in February, the ETF fell back to the breakout zone in the 63.50 area and firmed with a long white candlestick four weeks ago. Broken resistance is turning into support as StochRSI becomes short-term oversold. Look for a breakout at 66 to end this correction and signal a resumption of the bigger uptrend.  **************************************** Thanks for tuning in and have a great day! --Arthur Hill CMT Read More 

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Wal-Mart (WMT) Hints At New 52 Week Highs - Search Tip

by Greg Schnell

Wal-Mart (WMT) started ringing all kinds of alarm bells this week. Let's look at the chart, and then in the educational segment, I'll show some of the technical signals that Wal-Mart is marking. Wal-Mart's SCTR has been rising recently. The price is trying to break out to new 52-week highs. This makes Wal-Mart interesting. The relative strength trend line broke in late February. The daily MACD moved up above the zero line. So I would always like a chart pattern like this. However, Wal-Mart is such a significant part of the US (world) economy, it Read More 

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Utilities Surge as 10-yr T-Yield Drops below 2.3%

by Arthur Hill

The Utilities SPDR (XLU) surged as the S&P 500 fell below its 50-day SMA on Wednesday. Overall, notice that the 50-day EMA crossed the 200-day EMA in mid December and the ETF hit a 52-week high in late March. XLU is the strongest of the nine sectors since November 30th (+12.84%) and it is even up more than XLK (+11.61%). On the price chart, it looks like XLU is breaking out of a pennant formation. The March-April lows are used to set support in the 50-50.50 area.  Chartists looking for a reason can point to the 10-yr T-Yield ($TNX), which dipped below 2.3% for the first time this Read More 

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StockCharts Adds A Webinar Tab ! MTA Review

by Greg Schnell

Arthur Hill, Julius De Kempenaer and Greg Schnell all attended the Market Technicians Association meeting in NYC last week. With hours of presentations going on in multiple rooms it was very clear that technicians offer lots of variety and unique methods of covering the market. The RRG charts available on StockCharts.com were in multiple presentations and were also included in one of the biggest online technical presentations in years. There are so many outstanding analysts that attend and share their work, it is exciting to see the variety of diverse market views. Read More 

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General Electric Finds Support, but Remains Short of a Breakout

by Arthur Hill

It has been a rough year for General Electric (GE) because the stock is down around 4% and underperforming the S&P 500 SPDR (SPY), which is up around 6% this year. Despite relative weakness, momentum is improving as MACD edges into positive territory and the stock is bouncing off support. Notice that broken resistance and the 61.8% retracement zone turned into support as the stock bounced in early February. GE tested this level again in late March and bounced over the last two weeks. This is encouraging price action, but the stock remains below its first resistance hurdle. Look for a Read More 

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Looking For A Bottoming Reverse Head & Shoulder Breakout

by Tom Bowley

Kratos Defense & Security Solutions (KTOS) has been in a steady uptrend for the past 15 months and its SCTR (StockCharts Technical Rank) has risen back above 70, suggesting that KTOS is becoming more attractive relative to its peers.  It does still have plenty of technical work to do as you can see below: KTOS has not been a great investment long-term, but technical conditions have definitely improved and volume has been very heavy during the 2017 rise, a sign of accumulation.  A breakout above neckline resistance close to 9.50 would be very bullish - especially if heavy Read More 

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Omeros Corp (OMER) Finds A New High

by Greg Schnell

Omeros (OMER) has been weak for the last two years. In the last week, it surged to new 52-week highs and kept adding to it this week. The SCTR shows the stock as a weak performer for the last two years which suggests avoidance. But the trend appears to be changing with the first new 52-week high seen in years and the stock is becoming one of the top performers based on price action. A break above $16.80 gives us more reasons to be in this trade as it takes out some of the more recent buyers that were trying to buy in on the last major surge. The Read More 

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Charter Forms The Right Side Of A Cup

by Tom Bowley

Charter Communications (CHTR) extended its multi-year uptrend in late January with a heavy volume gap higher.  CHTR spent the next several weeks consolidating and unwinding very overbought conditions.  But the stock began to resume its prior strength after its RSI touched the 40s (black arrow below) and its MACD hit centerline support.  Check out the chart: CHTR looks solid in this potential bullish cup with handle continuation pattern.  It simply needs a handle to form, preferably on lighter volume down to test its rising 20 day EMA.  CHTR has been a very solid Read More 

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Ares Capital Corp (ARCC) Continues To Climb With A Strong Dividend

by Greg Schnell

Ares Capital Corp (ARCC) has a beautiful chart and this week's price action suggests this trend should continue. After consolidating sideways, the chart continued its upward ascent out of the trading range. The MACD had pulled back to the centre line and turned back up today. One thing to notice is the dividend yield is a healthy 8.65 %. Focusing in on strong stocks with a large dividend makes this a nice find. Good trading, Greg Schnell, CMT, MFTA   Read More 

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Russell 2000 Establishes a Clear Line-in-the-Sand $RUT

by Arthur Hill

The Russell 2000 surged last week and this bounce gives chartists a clear level to watch going forward. The chart below shows the small-cap index surging from early November to early December and then stalling between 1330 and 1390 for nine weeks. The index exceeded the early December high and hit another new high with the move above 1400 in February, but this new high did not hold very long as $RUT fell back to the January lows. With last week's surge, these lows held and the 2017 lows now mark an unequivocal line-in-the-sand for chartists to watch. Being an index with hundreds of stocks Read More 

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Defense Stocks Resolve Momentum Issues, Poised To Lead

by Tom Bowley

Bullish rotation continues in most areas of the market and we saw a perfect example of that last week in the Dow Jones U.S. Defense Index ($DJUSDN).  The DJUSDN had a HUGE month in February, gaining roughly 6.5% in that month alone.  That swamped the benchmark S&P 500, which gained 3.7% in February.  The problem, however, is that early March price high was a struggle and accompanied by a negative divergence.  Take a look: The low in December shows a beautiful bounce off price support and truly represents Technical Analysis 101 - prior price resistance Read More