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

US Bancorp Makes a Break for It

by Arthur Hill

US Bancorp lagged the broader market the first half of the year, but managed to firm from March to June and lead with a breakout in July. The chart shows USB falling from 57 to 49 with a sharp decline from late January to late March. The stock managed to firm after this decline and traded in the 48 to 52 range for over three months. Signs of buying pressure began to appear with the island reversal at the end of May. This reversal occurred with a surge in upside volume and upside volume continued to outpace downside volume in June and July. With Read More 

Don't Ignore This Chart

Best Buy Sits Just Below A Buy Point (BBY)

by Greg Schnell

Best Buy (BBY) was all but thrown out in the retail washout a few years ago. 2017 was a huge year for the stock. In 2018, the stock has consolidated all year. Now Best Buy sits just below a buy point on a breakout trade plan. The SCTR is holding in above 50 but is still pointed down at this point. After consolidating for so many months, it has lost a little price momentum.  The Full Stochastic indicator suggests the trend is turning up again. Currently the stock trades sideways in a 7-week sideways consolidation, holding just above the 10 week moving average. The PPO shows a gentle Read More 

Don't Ignore This Chart

Danaher Traces out Large Bullish Continuation Pattern

by Arthur Hill

Danaher is part of a strengthening sector (healthcare) and accounts for around 5.5% of the Medical Devices ETF (IHI), which is one of the strongest industry group ETFs this year. XLV is one of the best performing sectors over the last three months and IHI sports a parade of 52-week highs over the last few months. On the price chart, the long-term uptrend is up because the stock recorded 52-week highs in January and July. Even though price action has been flat the last five months, an ascending triangle formed and this is a bullish continuation pattern. Read More 

Don't Ignore This Chart

NASDAQ 100 Tracking ETF (QQQ) Ups The Risk Profile

by Greg Schnell

The Nasdaq 100 tracking ETF (QQQ) suffered a rough day today. It closed higher but without question the afternoon showed signs of the bullish trend weakening. After a strong gap up in the morning on Alphabet's earnings backdrop, the intraday chart rolled over quite hard. What makes this a little more difficult is that the momentum shown by the MACD is lower currently than on the June high. This setup looks very similar to the March 13th high. One other clue is if the QQQ starts underperforming the $SPX. If that happens, money will rotate away if the QQQ starts to underperform. This Read More 

Don't Ignore This Chart

Honeywell Bids to End Correction

by Arthur Hill

Honeywell (HON) kicked off earnings season for the big industrial stocks last week and surged on high volume. The stock is already in a long-term uptrend and the correction in the first half of 2018 appears to be ending. The stock is in a long-term uptrend because it hit a 52-week high in January and the PPO(10,40,0) is positive, which means the 10-week EMA is above the 40-week EMA. After hitting a 52-week high, the stock corrected with a falling wedge and decline to the 140 area (blue lines). Note that falling wedge patterns are typical for corrections within a Read More 

Don't Ignore This Chart

VF Corp (VFC) Sports New Highs

by Greg Schnell

VF Corp is a large cap stock with a wide brand portfolio. It wouldn't be a stretch to imagine at least one of their brands are in every household in North America. With this vast product portfolio and a hot jobs market with high employment, consumers could be stepping up to buy products. This could be a great time to get onboard with back to school, Thanksgiving and the run up to the holiday season. The chart suggests lots of investors getting onboard as the stock breaks out to fresh highs after consolidating. The SCTR has moved up above 90. The Full Read More 

Don't Ignore This Chart

A Momentum Divergence for the Regional Bank SPDR

by Arthur Hill

I do not use bullish and bearish divergences with momentum indicators very often because they usually form in the direction of the bigger trend. For example, most bearish divergences form in uptrends and most bullish divergences form in downtrends. I trade in the direction of the bigger trend and prefer to ignore such divergences. The Regional Bank SPDR (KRE) fits my divergence criteria because it is in a long-term uptrend. The long-term trend is up because the ETF recorded 52-week highs in mid-March and mid-June, and the 50-day EMA is above the 200-day EMA (not shown). Read More 

Don't Ignore This Chart

Why Gold Can Trade A Lot Lower

by Greg Schnell

With all the discussion of trade wars, recently the Chinese Yuan and the Japanese Yen have been falling. If a product is made in another country and the currency of that country drops, that makes the product less expensive to import for other countries. This is one method of dealing with trade imbalance. The total value of imported goods will drop bringing the trade imbalance closer in line. It could also mean more products get imported because other products are cheaper which doesn't solve the trade imbalance. A lower currency may create more imports rather than Read More 

Don't Ignore This Chart

Manitowoc (MTW) Tries To Change Trend

by Greg Schnell

Manitowoc is trying to break the downward trend. There are a few bullish signals on the chart. The Full Stochastic is moving above 50. The PPO is kicking off a buy signal this week. There is a little four month trend across the highs on the chart that could quickly be broken with a sudden surge. Late July 2017 was a fabulous surge to get on board for a 40% move.  If you are missing clues on signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access! Read More 

Don't Ignore This Chart

Paypal (PYPL) Breaks Out After Consolidating For 6 Months

by Greg Schnell

Paypal (PYPL) has been consolidating for 6 months. and this week it is breaking out fresh new highs along with Visa And Mastercard. These are very supportive consolidation patterns. Anyone who bought the stock in the last 6 months is now in a profit position and less likely to be a seller. The SCTR shows Paypal outperforming 89% of the stocks. The full stochastic is holding above 80 which is very bullish. The PPO has pulled back and just broke the downtrend line. This is very bullish. Last weeks volume was anemic and this week's volume is very light after four days on a weekly volume bar Read More 

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