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

Amazon $AMZN Sets Up For The Holidays

by Greg Schnell

Amazon has had a rough month in October. With the stock dropping $450 or 20% from its highs, it is clearly being marked down. The real question is can we buy the stock for the holiday season? Can Amazon be a set up for the holiday season? I like the weekly Full Stochastic signal here. This is a once a year signal that shows up for Amazon and typically leads to a great run in the stock.  This means the stock is in the setup zone and we need to wait for a confirming signal to buy if you are a weekly chart investor. The last time price dipped below the 40 Week moving average was on the Read More 

Don't Ignore This Chart

Can I have some fries with that please?

by Julius de Kempenaer

On the Relative Rotation Graph holding the 30 stocks in the DJ Industrials index, McDonald's (MCD) is one of the names that pop up as potentially interesting. The stock is positioned inside the improving quadrant for a few weeks now and moving towards the leading quadrant at a strong RRG-Heading. Especially the last segment of the trail shows the increasing relative strength against the S&P 500. Bringing up the price chart for MCD this morning was actually a pleasant surprise among all the misery on global stock exchanges around the Read More 

Don't Ignore This Chart

This Software Stock is Holding up Well in October

by Arthur Hill

The pickings are getting slim after sharp declines in October, but some stocks are holding up better than others. The Software iShares (IGV), in particular, held up better than most industry group ETFs and Adobe (ADBE) is a leader in this group. The chart below shows Adobe falling sharply in the first half of October, but managing to hold the summer lows and 200-day SMA. The S&P 500, in contrast, broke its 200-day during the October decline. This means Adobe is holding up better. On the price chart, the stock bounced off support in mid October and managed to hold Read More 

Don't Ignore This Chart

Invitae Corp (NVTA) Prints A Hammer Candle

by Greg Schnell

Invitae Corp is a small biotech that has been in an uptrend since April. Over the last month the stock has pulled back to find support at the recent lows. On Tuesday, Invitae Corp (NVTA) printed a nice hammer candle that you can see in the zoom panel.  With the wide ranging pullback in the overall market, finding strong stocks like this that give an opportunity to pick up on a pull back are nice to watch. If the stock can start to bounce from here, this looks like a nice entry with a stop just below. Here are the three most recent videos I have Read More 

Don't Ignore This Chart

Using the Measured Move Technique for Citigroup

by Arthur Hill

Citigroup (C) is leading the Financials SPDR (XLF) lower with a lower high in September and a rising wedge break in October. The chart shows weekly bars for Citigroup over the last three years. The stock led the market higher in 2016 and 2017 with a gain exceeding 100% from low to high. This big bank turned into a laggard in 2018 because it never challenged its January high and formed a lower high in September. The summer bounce to the 75 area formed a rising wedge and these patterns are typical for counter trend rallies. C broke the lower trend line and the August low over the last Read More 

Don't Ignore This Chart

Fortis (FTS) Starts To Move

by Greg Schnell

Fortis is a North American utility company that is set up quite nicely here. The annual dividend is 4%  and the quarterly payment is due in November. This chart intrigues me because the setup across a lot of the pipeline and utility charts is similar. The Relative Strength is breaking a one year down trend. The SCTR ranking has been improving for the last three months and is now at 52 week highs. The down sloping price trend line is being tested today. The Full Stochastics is giving off a particularly nice setup. When the stochastic pulls back from the 80 level and bounces around Read More 

Don't Ignore This Chart

Is the bond market sending us a message?

by Julius de Kempenaer

When markets are in transition and the bigger picture needs our attention it is always good to keep an eye on the yield curve. The absolute yield levels of the various maturities on the curve, starting at 3-Months all the way out to 20+ years are important to monitor. But what's probably even more important to monitor is the change of the shape of the curve. Relative Rotation Graphs can be of help analyzing the shape and the change in shape of the curve. The picture above shows the rotation of the various maturities around the 3-7 year maturity which is the benchmark (center) for this Read More 

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This Entertainment Leader is Still Crushing It

by Arthur Hill

The S&P 500 fell to its lowest level since early July and pierced its 200-day moving average last week. Chartists looking for stocks that held up better during this decline can use these levels for comparison. Stocks that did not break below their August lows and 200-day moving averages held up better and show relative "chart" strength. The chart below shows Activision Blizzard (ATVI) with a series of higher highs and higher lows over the past year. The stock fell with the rest of the market in early October, but did not even test its August low and did not break the 200-day EMA Read More 

Don't Ignore This Chart

Revlon Makes A Base For A Fourth Quarter Makeover

by Greg Schnell

Revlon (REV) showed up on the 52 week high scan today. On the chart there were some intra-week moves to higher levels but based on close only daily data, Revlon is pushing up. What is really important is the relative strength of Revlon. While the overall market was dropping quickly, Revlon stock was being bought up. The Relative Strength area chart in purple shows new 52 week highs as well as on the price panel. The SCTR is moving up after being at the bottom of the range. This sort of thrust is usually a helpful indicator of new interest.  With the volume picking up and Read More 

Don't Ignore This Chart

Ultra Beauty Turns After Pullback

by Arthur Hill

The broad market environment is a bit shaky right now, but Ultra Beauty (ULTA) is holding up relatively well with a normal pullback after a big breakout. First and foremost, the stock is in a long-term uptrend after a breakout, surge and 52-week high in September. Also note that the 50-day EMA is above the 200-day EMA and price is above the rising 200-day EMA. After surging some 25 percent, the stock fell back to the 50-day EMA in early October with a normal pullback. While stocks were falling sharply on Thursday, the stock closed with a small loss and managed to hold above the rising Read More 

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