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

Visa Hits New High and Chases Mastercard

by Arthur Hill

Visa (V) is leading the stock market as it breaks out of a triangle and records a fresh new high. The stock is now setting its sights on its big rival, Mastercard.  The chart below shows Visa in the top window with a steady advance from May to January and then a triangle consolidation. A triangle within an uptrend is viewed as a bullish continuation pattern. Last week's gap and breakout, therefore, signal an end to the corrective period and a resumption of the bigger uptrend.  The middle window shows Mastercard with a strong uptrend of Read More 

Don't Ignore This Chart

AbbVie Surges (ABBV)

by Greg Schnell

AbbVie shot up on the open this morning with a really nice surge. The stock had been enjoying a beautiful uptrend but hit some turbulence in March. With today's move above the recent base, this looks set to resume.  The volume was exceptionally strong with over 10 million shares traded. Some of the nice technical features include the tight trading range before this recent pop. The MACD is pushing higher off a momentum low in early April.  Quite a few of the former winners are starting to break higher. This looks set to continue. A recommendation for the Read More 

Don't Ignore This Chart

QQQ: Breakdown, Mean-Reversion Opportunity or Both?

by Arthur Hill

The Nasdaq 100 ETF (QQQ) broke down with a sharp decline the last five days and this pushed RSI(5) below 30 for a short-term oversold reading. The breakdown is bearish, but it has also created a short-term mean-reversion opportunity.  I first introduced a mean-reversion trading system using RSI in June 2016. This system evolved over the next few months as I turned to the Chandelier Exit for exit signals. The system trades SPY, IJR, QQQ and MDY using RSI(5) for entry signals and Chandelier (22,1) for exit signals. This article is only available to StockCharts members.  Read More 

Don't Ignore This Chart

Ever Had A Bulldozer Drive Over Your Portfolio?

by Greg Schnell

Today Caterpillar reported great earnings with almost $1 Billion beat on revenues. Huge. But the CFO mentioned that they are wondering if this might mark peak earnings for the cycle. Whoops! The corresponding move in other Industrial stocks was swift. Deere and Co, Cummins, the XLI SPDR Industrial ETF; and Finning - Caterpillars largest dealer are shown. What makes this more important, is the XLI. The XLI is sitting on the 200 DMA average and near 5 month lows. All this makes the market direction way more difficult. Trade cautiously. Read More 

Don't Ignore This Chart

Costco Breaks Triangle Line with Big Gap

by Arthur Hill

Costco (COST) is showing some upside leadership this year with a triangle breakout and challenge to the January high.  Long-term trend identification is important because it sets my bias going forward. My bias is bullish when the long-term trend is up and this means I favor bullish patterns over bearish patterns. The overall trend is clearly up because Costco hit a 52-week high earlier this year, the 50-day moving average is above the 200-day and price is above the 200-day.  COST stalled after hitting the new high and formed a big Read More 

Don't Ignore This Chart

Bond Prices Look Set To Break Down Meaningfully

by Greg Schnell

Bond prices are rolling over at a critical place on the charts. This sends yields higher. The big 5 year picture shows the delicate place where the bonds prices are falling. It is a perfect head/shoulders top with declining momentum on each push up. This is shown on the MACD. Also, notice the MACD gave a sell signal on Friday's close and closed below the 10 Week Moving Average.  While normally this 'bond prices are breaking down' narrative would just be more noise for the market, we can see the slimmest of margins before this price action will Read More 

Don't Ignore This Chart

American Express Goes To The Front Of The Line

by Greg Schnell

American Express jumped to the front of the line and closed on all time highs with a huge surge today. The SCTR surged back above 75 and the Relative Strength moved to new highs. Both of these are excellent indicators of strength. The price chart shows todays move exploding outside the range of the recent consolidation. Moves like this usually continue so watch for the stock to stay active in the top right corner. While payment systems were raging in 2017 AXP was tracking them higher. After correcting for the first three months of the year, American Read More 

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Silver Surges out of Bollinger Band Squeeze

by Arthur Hill

Industrial metals surged on Wednesday with 2+ percent gains coming in silver, aluminum, palladium, copper and nickel. The Silver ETF (SLV), in particular, finally broke out of a two-month consolidation. The chart below shows the Silver ETF (SLV) with Bollinger Bands in pink and BandWidth in the indicator window. Overall, SLV has been stuck in a large trading range the last 12 months. With today's move, the ETF surged off the mid-point of this range and the cup is now half full.  The Bollinger Bands narrowed in early March and remained tight into April. Notice Read More 

Don't Ignore This Chart

Microsoft (MSFT) Resumes The Ramp

by Greg Schnell

Microsoft has been a huge mover in the large cap space. Over the last few months, it took a rare pause on making higher highs. It looks ready to start climbing again. The SCTR continues to be up in the top 25% and is currently at 90. The relative strength just keeps hitting all time highs. The price move today suggests it is continuing in its uptrend.  The MACD is just moving above zero so this set up has lots of room to run. Charts are breaking out all over the place. Now the the indexes have broken above resistance we are Read More 

Don't Ignore This Chart

Analog Devices Reverses Course at Key Retracement

by Arthur Hill

Analog Devices (ADI) is a large semiconductor stock and a leader in the internet of things (IoT). The stock is in a long-term uptrend and recently broke short-term resistance to reverse a short-term pullback.  First and foremost, the long-term trend is up. The stock hit a 52-week high in January, the 50-day EMA is above the 200-day EMA and the price is above the rising 200-day EMA.  The stock has been moving sideways since November with a least five price swings greater than 9 percent. The decline from  mid-March  to early April marks the last downswing and the stock Read More 

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