Don't Ignore This Chart

DSW Takes the Lead with a New High

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The S&P 500 is well below its January high and trading near its February low. DSW, in contrast, hit a 52-week high last week and is clearly leading the market. 

The chart shows DSW with a choppy advance from mid August to mid November and then a choppy consolidation. The consolidation narrowed over the months and a large symmetrical triangle formed. 

DSW gapped up and broke resistance within the triangle in mid March. Notice that this internal breakout occurred on big volume. The stock continued higher after the surge and upside volume continued to outpace downside volume. 

DSW transitioned to a long-term uptrend with the combination of an upside breakout and 52-week high. The resistance zone turns into the first support zone to watch on any pullback. 


Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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