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

Oil Hits Potential Reversal Zone

by Arthur Hill

Oil fell rather sharply over the last two weeks, but the long-term trend is up and two technical indicators point to a bounce. The chart below shows the USO Oil Fund (USO) in the top window, RSI for USO in the middle and the Light Crude Continuous Contract ($WTIC) in the lower window. USO is fine for short-term analysis, but I prefer $WTIC for long-term analysis. First and foremost, the long-term trend is up as crude advanced from the mid 40s in June 2017 to the low 70s in May. Oil hit a 52-week high in May and remains well above its rising 200-day SMA. Read More 

Don't Ignore This Chart

Cameco (CCJ) Breaks Out Of The Base

by Greg Schnell

Cameco has underperformed for years. About 6 months ago, Cameco started to limit Uranium supply. Now the stock looks set up to run.  The SCTR is moving back above 75 which is a sign of a strong stock. The Full Stochastics are turning up above 50 which is a bull market trait. Price is moving to new 52 week highs.  On the recent pullback, volume was light. Bullish. Now the PPO is above zero and looks set up to make higher highs. Another bullish trait.  The big picture is the three year base at $13. If this Read More 

Don't Ignore This Chart

Apple Breakout Could Lift these Two Suppliers

by Arthur Hill

Apple (AAPL) broke out of a pennant formation with a surge on Friday and this breakout could bode well for Qorvo (QRVO) and Skyworks (SKWS). The first chart shows Qorvo surging over 20% and then stalling with a contracting consolidation. This is a pennant and it is a bullish continuation pattern. A breakout would signal a continuation higher and open the door to new highs. The indicator window shows the Correlation Coefficient so we can compare Qorvo with Apple. There were two dips into negative territory, but these two are positively correlated for the most part Read More 

Don't Ignore This Chart

IDEXX Laboratories (IDXX) Resumes The Uptrend

by Greg Schnell

IDEXX has built a textbook consolidation with an ascending base. Today it moved above the previous closing highs and looks like it is resuming a big uptrend.  The SCTR has moved back above 90 and the relative strength is almost at new highs. The price action is obviously bullish but this $208 level has provided some resistance. With today's surge, the stock looks to be leaving the $208 level in the rear view mirror.  The volume is ok with an average of 490,000 shares a day and the MACD has just turned up. This looks setup for another leg higher. Read More 

Don't Ignore This Chart

Facebook (FB) Recovers From Global Grilling

by Greg Schnell

Facebook surged to new three month highs with the potential to retest the all time high later this week. Obviously one of the best buy points was when they announced that Mr. Zuckerberg would testify in Congress. That marked the bottom of the stock. Now what to do with the stock? After the 4 months consolidation, Facebook is trying to break $200 over the next few days or weeks. The stock is moving back above 75 on the SCTR ranking so that is very positive in my work. A top performing stock is bullish, not over bought. We can also see the stock is making new highs in relative Read More 

Don't Ignore This Chart

A Bullish Continuation Pattern Forms in the Biotech iShares

by Arthur Hill

The Biotech iShares (IBB) surged off support in mid-May and then stalled the last two weeks with a bull flag taking shape.  A bull flag is a short-term bullish continuation pattern. These patterns form after a sharp advance and represent a rest or consolidation. This is often needed to digest the gains and prepare for the next leg higher.  Flags can be flat or slope down and they fly at half-mast. Thus the pole we see in the chart below is only a half pole. A flag breakout would signal a continuation of the prior advance and project a similar move higher. Thus, the length Read More 

Don't Ignore This Chart

TripAdvisor (TRIP) Takes Its Own Advice

by Greg Schnell

TripAdvisor (TRIP) has become a mainstay tool for frequent travellers. Last week I was in Greece and we used it all the time. Checking out ratings on restaurants, patios, plays, and hotels is so easy on TRIP. The website created ways to book restaurants and hotels directly through the site without going to restaurant booking tools or another travel site.  While this is starting to show up in the stock. After being in a 3-year downtrend, TRIP took its own advice and left the base for travels up and away. After two big earning thrusts, the stock recently made new 52-week Read More 

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Career Education (CECO) Looks Ready For Advancement

by Greg Schnell

Career Education (CECO) is breaking out above an up trending consolidation. The stock continues to push higher. The SCTR continues to hover around 75, suggesting the stock is a continuous top performer. This is a typical top performing stock configuration. Higher highs, higher lows. Ascending relative strength shown in purple is textbook for a strong performer. The daily MACD continues to be above zero most of the time. The MACD pulls back to the zero line, resets and starts another run. There is a lot to like when you see a strong chart setting up Read More 

Don't Ignore This Chart

Bull Flags in JP Morgan and Morgan Stanley

by Arthur Hill

I highlighted a number of bull flags in Tuesday's show (On Trend), and there were some breakouts. These breakouts, however, were not very convincing because stocks closed weak and gave back their early gains.  Today I will highlight the flags in JP Morgan (JPM) and Morgan Stanley (MS). Note that JPM is the largest holding in XLF and accounts for 11.36% of the SPDR. MS weighs in at 2.22%.  The chart below shows both stocks challenging their April highs (red zone) with surges in early May. Both stocks then fell back last week and formed falling flag patterns. With a bounce the Read More 

Don't Ignore This Chart

Can Advance Auto Parts (AAP) Put The Chart In Drive?

by Greg Schnell

Advance Auto Parts has been significantly beaten up over the last year. The last six months shows the stock building a nice base. The stocks sets up nicely here, but lets review the technicals. First of all, the SCTR shows it becoming one of the top stocks for price movement. That is a big plus as momentum investors find this stock showing up in the scans.  The Relative strength is near 11 month highs but not quite there yet.  Price has consolidated sideways since January along with the broader market index ($SPX).  The volume trend Read More 

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