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

Cisco Holds Up Well and Maintains Uptrend

by Arthur Hill

Relative strength, an uptrend and a bullish continuation pattern point to higher prices for Cisco (CSCO). First and foremost, Cisco is in a long-term uptrend. The stock recorded a 52-week high in early October, the 50-day SMA is above the 200-day SMA and price is above the 200-day. Second, Cisco held up better than the S&P 500 and the Technology SPDR during the recent pullback. Both $SPX and XLK broke below their 200-day SMAs, but CSCO held this moving average in late October and again in late November. In addition, CSCO formed a higher low from late October to late November as $SPX Read More 

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Workday (WDAY) Puts In A Full Shift

by Greg Schnell

Workday has been a big performer but over the last nine months it has built a floor around $120. Friday saw the stock soar above the previous highs. While it is hard to buy after a 12% surge in one day, this stock looks like a good buying candidate on a pullback.  The SCTR shows it as one of the strongest stocks out there. The relative strength soared to new heights. The November double bottom was an important base and the $50 move off that is very impressive. The stock obviously attracted a lot of volume interest as well. With this volatile market, I would follow the stock Read More 

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Market is still playing defense!

by Julius de Kempenaer

The recent rally of the S&P 500 index off the lows near 2600-2625 is nice but is it sustainable? The Relative Rotation Graph above shows the rotation of the 11 SPDR sector ETFs against SPY and the message is very clear! There is a clear split between the sectors. Four sectors are inside the leading quadrant and they are all still heading higher on the Jdk RS-Ratio scale, i.e. gaining relative strength versus the S&P 500. There are six sectors inside the lagging quadrant and only one (XLF) is in the improving quadrant. Read More 

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Varian Medical Successfully Tests Breakout Zone

by Arthur Hill

Healthcare stocks are leading the market and many were featured in Tuesday's show, On Trend. See below for details. Today I am highlighting Varian Medical (VAR) because it seems to be in the early stages of an uptrend. Normally, I do not highlight stocks that trended lower for most of 2018. However, this stock is in a strong sector and some long-term indicators are turning positive. The 50-day EMA moved above the 200-day EMA and price has been above the 200-day EMA the entire month. The chart below shows the stock breaking out with a big surge in October that included Read More 

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TripAdvisor (TRIP) Consolidates

by Greg Schnell

TripAdvisor broke out to new 52 week highs in October. Since then, the broader market has been rocky while TRIP has pulled back and consolidated. Check out the chart.  The SCTR shows the stock outperforming its peers. The relative strength has pushed up and consolidated near the highs much like price. The full stochastic is a little problematic. Normally a full stochastic will accelerate into the top 80 % level. So far it has not done that and looks like it could potentially turn back down here. So with a stop nice and close, the rest of the chart looks stronger.  Read More 

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Hologic Doubles Down on Breakout

by Arthur Hill

While the S&P 500 toys with its October low, Hologic its flirting with its summer highs and showing strength over the last few months. The chart below shows Hologic (HOLX), which his part of the Medical Devices ETF (IHI), with its 50-day SMA above the 200-day SMA and price well above the 200-day SMA. Even though the stock has moved sideways for most of the year, the bias is now bullish based on these moving averages. Most recently, the stock managed to break above resistance twice in November. The first breakout did not hold as the stock fell back to the 200-day Read More 

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This Technology stock lost 50% of its value but is now hitting support levels.

by Julius de Kempenaer

The Relative Rotation Graph for the technology stocks in XLK (Technology select sector SPDR) shows one big outlier that recently went through a big rotation. It crossed from improving to leading in June then pushed to a JdK RS-Ratio value over 140 before rolling over. Three weeks ago the rotation went from the leading quadrant into weakening and is now showing the longest tail in this universe. After a high at $34 in the week of 14 September, the stock dropped to a low at $16 in the week ending 2 November. A loss of more than 50% The victim's name? : AMD (Advanced Read More 

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A Global Logistics Player Hits Resistance

by Arthur Hill

United Parcel Service (UPS) is a global player in logistics and package delivery. The outlook for the global economy is surely dimming with the Shanghai Composite ($SSEC) falling all year, the German DAX Index ($DAX) and French CAC Index ($CAC) hitting new lows, and the S&P 500 turning south over the last two months. Even though the stock has yet to hit a 52-week low, the long-term trend is down. The chart below shows UPS with a lower high from January to early September. The stock peaked a few weeks before the S&P 500 and broke its summer lows in late October. UPS broke the Read More 

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Semiconductors Surge On Huge Down Day

by Greg Schnell

The Semiconductor stocks were trying to lead to the upside in Tuesday's big down day. That's a short term bullish sign. Six semi stocks were in the top 22 from the S&P 500.  Considering how low in the hole they were to start the day, that is a big improvement.  Looking at NVDA, it was down 55% off the highs, but came back and at the time of publishing was above yesterdays close. That's a pretty big rebound. These big name stocks are trying to bottom. Facebook and Amazon both got back into positive territory after steep drops on the open. So this wild environment shows some Read More 

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Viacom Makes a Move with Big Volume

by Arthur Hill

Viacom (VIAB) is part of the broadcasting-entertainment industry group, which is part of the Communication Services SPDR (XLC). The stock acted more like a defensive share in the first half of the year by underperforming from January to May. VIAB bottomed in June and outperformed the broader market over the last five months. On the price chart below, we can see VIA correcting after a big surge from November to January. The correction formed a falling channel/wedge as the stock retraced 61.8% of the prior gain. A 1/2 to 2/3 retracement is fairly normal for a correction within a bigger Read More 

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