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

Monster Beverage Pours An Earning Boost $MNST

by Greg Schnell

Monster (MNST) reported great numbers, beating on both earnings and revenue. What makes the chart valuable is that, after all is said and done, we can see that price is moving above the centre of the range. The real story here is that MNST has been flat money for the last 1.5 years. Also worth noting is the fact that the stock recently tried to break out, pulled back and has now relaunched.   While some of the mainstream stocks have garnered all of the attention, the technology names have underperformed over the last few weeks and defensives have Read More 

Don't Ignore This Chart

Will JNJ Be Able To Pull The Sector Back On Its Feet?

by Julius de Kempenaer

The Healthcare sector is not in its best shape. On the Relative Rotation Graph for US sectors, XLV is deep down inside the lagging quadrant against SPY, without any signs of improvement at the moment. However, if you feel that this situation will not last forever and are gutsy enough to prepare a bit for a turnaround, you may want to look at JNJ. Price On the weekly price chart above, JNJ looks to be clearing horizontal resistance around $140. There are still two days left in the week, but things look good so far. The next Read More 

Don't Ignore This Chart

Docusign Breaks from Consolidation Pattern

by Arthur Hill

Docusign (DOCU), a company that provides e-signature solutions, started trading on August 27th and surged over 30% on its IPO. The stock advanced another 65% after this initial gain and then fell back to the IPO price in October. Notice that the six month lockup period ended on October 24th and the stock established support in the 40 area the next two months. The stock moved higher in the first quarter and the chart looks bullish after a consolidation breakout in late April. Even though there is less than a year of price history, there is enough to form an opinion on Read More 

Don't Ignore This Chart

Which Way Will The Bond Market Turn On Fed News?

by Greg Schnell

The bond market has narrowed itself into a tight range. Below is the TLT chart, with the yield payments removed from the price action. This chart allows us to see how the price is moving, and right now it is sitting at a particularly interesting junction. Bond prices started to rise after the Fed meeting on November 7-8th and have continued to rise since, but they now face an important decision point. Let's walk through what the chart is telling us. In a down market, the weekly RSI has trouble rising above 60. Back in March (2019), the market players pushed the RSI to Read More 

Don't Ignore This Chart

Palo Alto Readies for its Next Move

by Arthur Hill

Palo Alto Networks (PANW) is a leading cyber-security stock that fits into the technology sector. Needless to say, the Technology SPDR (XLK) and the EW Technology ETF (RYT) are the leading sectors here in 2019. PANW took a break with a consolidation over the last eight weeks, and this could be the pause that refreshes. First and foremost, PANW hit a new high in early March and is well above the rising 200-day SMA. The long-term trend is clearly up. The stock is also a leader in 2019 because it recorded a 52-week high this year. The stock surged Read More 

Don't Ignore This Chart

XLV Gets An Injection

by Greg Schnell

The Healthcare sector recently broke to 2019 lows. Does that make the sector a don't-touch, even as the market makes all-time highs? Well, this week's price bar looks like a strong bounce off a three-year support line. With that as a backdrop, the chart provides some more information that suggests this is a tradable low, with support nearby to shoot against. The Pros: Healthcare's SCTR ranking is at its lowest point in 5 years. It does not usually stay down at this level, but it will have to start outperforming to climb back up past how other ETFs are performing. Because Read More 

Don't Ignore This Chart

Party Like It's 1999 for QCOM

by Julius de Kempenaer

Technology is doing very well on the Relative Rotation Graph for US sectors, with a rotation that is well inside the leading quadrant and pushing further into it. If we shift gears and look specifically at the RRG for the technology sector (against XLK), we can see there is one tail that firmly stands out: QCOM. At present, QCOM has a long tail inside the improving quadrant, traveling at an RRG-Heading between 0-90 degrees, and is close to a crossover into leading. With all that going for it, this chart definitely seems to be worth a look Read More 

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COUP Flies the Flag after Big Gain

by Arthur Hill

Coupa Software is one of the best performing stocks in 2019 with a 50% advance year-to-date. In addition, the stock is up over 80% from its late December low. Too far too fast you might say? Perhaps, but the stock digested its gains with a consolidation the last two months and this could set the stage for another move higher. As you can see from the stock price, Coupa Software (COUP) is clearly a high growth company. High growth stocks offer above average returns, but also above average risk. Coupa fits into the enterprise software group by offering cloud-based solutions for companies to Read More 

Don't Ignore This Chart

Is GOOS About To Lay Another Golden Egg?

by Greg Schnell

Buying retail at this time of year is tricky, but Canada Goose (GOOS) is sitting at an inflection point on the chart. Over the last couple of weeks, the stock has moved through a downtrend in relative strength (shown on the purple area chart) and sits just below the three-month horizontal green line. The weekly full stochastic is trying to turn up above 50; after having been below for a while, it may now be pointing to a trend change for a swing trade. Price has broken the six-month downtrend following a move above the 10-week moving average. If it can move above $54.06, that would put it Read More 

Don't Ignore This Chart

Ciena Hits Potential Reversal Zone

by Arthur Hill

The ideal scenario for traders is to buy after a pullback for a good reward-to-risk ratio. When the long-term trend is up, I look for indications of support and signs that an upturn is in the making. The chart for Ciena sports a classic setup with a confluence of indicators pointing to support and signs of an upturn. First and foremost, Ciena (CIEN) is in a long-term uptrend. The stock hit 52-week highs in February-March and remains well above the rising 200-day SMA. CIEN fell back in March with a big one-day reversal on March 5th and decline to the 37 area. This zone marks the upper end Read More 

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