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

Walmart Fires Up The Jet $WMT

by Greg Schnell

A few years ago, Walmart bought Jet.com, an online retailer. It was a big purchase of an unprofitable retailer, but the expertise of the online platform management was part of the action. On that note, Walmart reported strong earnings numbers yesterday above street expectations, crediting their online initiative for the growth. (The revenues were a touch light.) Walmart has allowed the online unit to really get rolling, which bodes well for management as acquisitions can die in large companies. I guess you could say they fired up the jet! But can it lift the stock to new Read More 

Don't Ignore This Chart

Will this break in IEF be able to hold up?

by Julius de Kempenaer

Browsing some Relative Rotation Graphs, the relationship between Stocks and Bonds once again drew my attention. When I shifted to their respective charts, I decided that the current price action of IEF, as shown in the graph above, deserves our (or, at least, my) attention. This ETF, which tracks the performance of 7-10 year Treasury bonds, broke above an important horizontal resistance level (106.50) three days ago. It then hovered above that breakout level the day after the break, before then jumping to a high of 106.97 yesterday. Read More 

Don't Ignore This Chart

Is GE for Real This time?

by Arthur Hill

General Electric (GE) is one of the worst performing stocks over the last two years, but the stock is perking up in 2019 and outperforming in May. The S&P 500 is down 3.8% so far this month and GE is up 1.5% after a big surge on Tuesday. GE is trying to reverse the long-term downtrend with a move above its 200-day SMA over the last two weeks. The stock broke above this key moving average with a gap up on April 30th and is largely holding above the SMA. The moving average, however, is still falling. The chart sports a bullish reversal pattern Read More 

Don't Ignore This Chart

Is This Defense Stock Preparing For Take Off?

by Greg Schnell

In a market with 240-point swings based on 240-character tweets, it can be pretty hard to pick a direction. While the market churns through this current trade debate, we have a few more such debates on tap with Europe and Japan. As car tariffs with Europe could potentially start this weekend, the uncertainty looks set to continue.  With all this going on, it makes sense to try insulating our portfolios with some stocks that might not be trade-related. One suggestion might be the defense stocks. While the market has pulled back from May Read More 

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AMD Holds Up Well with Semiconductor Group

by Arthur Hill

The S&P 500 was down 2% last week and the Nasdaq fell 3%. Stocks that gained on the week showed relative and absolute strength. Stocks that fell less than 2% showed relative strength. The average semiconductor stock within the S&P 1500 was down 5% last week with only 3 of 46 closing higher. AMD did not close higher, but it fell less than 1% and held up much better than the group as a whole. DIOD and QRVO also held up well and have interesting charts. The table below shows the top 12 peforming semiconductor stocks last week. Only three were up and nine were down.  Read More 

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Aflac Is Unflappable $AFL

by Greg Schnell

With all the news this week regarding trade, some stocks just quietly fly under the radar. This week, it was Aflac (AFL). While the market made lower lows almost every day this week, Aflac made its lows on Monday and its high on Friday. I like seeing that relative strength. The SCTR suggests AFL is a top performer, moving above 75. While Aflac usually performs in line with the $SPX, it recently pushed up in relative strength. If the market needs more time to be defensive here, this chart looks like a stable theme. I like seeing the PPO momentum indicator turning up after bouncing Read More 

Don't Ignore This Chart

Strong Rotation For AXP on RRG vs DJ Industrials

by Julius de Kempenaer

Watching the Relative Rotation Graph for the DJ-Industrials universe, you can see a few stocks, like AAPL, BA and WBA, that stand out immediately. Despite the current setback in the market, there are still some stocks that are worth approaching from a buyer's perspective. Inside The Leading Quadrant and At Strong Heading One of these positive exceptions is AXP. You need to zoom in on the RRG to find it, as the area around the center of the chart is a bit crowded.  The best way to do that, IMHO, is to click "fit" to make the RRG use Read More 

Don't Ignore This Chart

Micron Fails at Break Zone

by Arthur Hill

A basic concept of technical analysis is that broken support turns into future resistance. This concept is proving true for Micron (MU) as it returned to broken support in April and backed off the last two weeks. The chart shows MU breaking down with a support break in September and further weakness into late December. The stock recorded a 52-week low near 30 in late December and then rebounded to the 45 area by April. Even though a 50% advance off the lows is impressive, it retraced less than 50% of the prior decline and met resistance near broken support (blue zone). Also notice that Read More 

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Both Composite Indexes Stall At Resistance

by Greg Schnell

Looking at the broad composite charts below, we can see that both the Nasdaq and NYSE Composites are at important resistance points. The Nasdaq Composite is hovering at important technical resistance; the black line could be at 8100, but, by putting it at 8000, we can give it some wiggle room. This is after a huge thrust of 32% off of the December lows. The other major index is the New York Composite. Notice how important 13000 is for the $NYA. The New York Composite is a better index for warnings and is usually the first to break. The broad Read More 

Don't Ignore This Chart

Ebay Holds the Gap and the Break

by Arthur Hill

Ebay (EBAY) reversed its downtrend with a reversal pattern and break above the 200-day SMA in late January and early February. After digesting its gains with a corrective pattern in March-April the stock broke out again with a gap and appears headed higher. The stock formed a rare island reversal from October to January. Notice how the EBAY gapped below 31 and continued lower in October. After consolidating for a few months, the stock gapped above 31 in January and continued higher. The gaps align to create an island where those with short positions are trapped with losses. Read More 

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