- Charts Worth Watching (APA, CLF, JOYG, NSM, NVDA, T, NKE, CL).
Despite relative weakness in the energy sector, Apache (APA) broke consolidation resistance with a volume surge on Thursday. Also notice that the price relative turned up over the last few days and broke above the late January trendline. The next resistance zone is in the mid 80s. Classified as an independent oil and gas producer, APA is part of the energy sector.
Cleveland Cliffs (CLF) broke consolidation resistance with a surge in volume on Thursday. Furthermore, On Balance Volume (OBV) reveals strong upside volume since late March. Notice that OBV broke resistance in early April and hit a new high on Thursday. The next resistance zone for CLF is in the low 30s. CLF is a steel producer that is part of the materials sector, which has shown relative strength lately.
Speaking of strong OBV, Joy Global (JOYG) also shows strong upside volume since early March. OBV broke resistance in early March and moved to new highs throughout April. The stock sports a large double bottom with resistance around 27-28. Even though resistance is at hand, strong upside volume increases the chances of a breakout. Joy Global produces mining equipment and is part of the industrials sector.
National Semi (NSM) shows signs of strength with a breakout and strong upside volume. After forming a large base from November to March, NSM broke above its Dec-Mar highs with a surge in early April. A small consolidation then ensued, but upside volume remained strong. NSM surged on Thursday and a breakout attempt appears in the offing. As its name implies, National Semi is part of the semiconductor group.
Nvidia (NVDA) challenges flag resistance. NVDA has been showing relative strength the entire year (2009 that is). The stock surged in Nov-Dec, consolidated and then broke resistance with a massive surge in March. Notice that this surge started in late February, which was before the S&P 500 and Nasdaq took off. Most recently, Nvidia formed a falling flag over the last few weeks and surged with good volume on Thursday. Nvidia specializes in computer graphic hardware/software and is part of the technology sector.
AT&T (T) consolidates with a triangle over the last six weeks. The stock surged with the market in March, but has yet to follow through on this surge. In fact, T is actually showing some relative weakness with the price relative moving lower since late March. Nevertheless, I will be watching the triangle boundaries for the break. An upside breakout on good volume would be bullish, while downside break would be bearish. AT&T is a telecom services provider that used to be known as Ma Bell.
Nike (NKE) runs into resistance from a key retracement. Nike has been a stellar performer since early March. However, after hitting a key retracement (62%), the stock declined on high volume over the last two days. There is also an argument to be made for resistance around 57.5 from broken support and the Oct-Dec highs. With the stock overbought as well, the high volume decline over the last two days could signal the start of a correction. Nike makes great shoes and is part of the consumer discretionary sector. I own several 1000 pair. Well, maybe not quite that many.
Colgate-Palmolive (CL) declines from resistance on high volume. After breaking down in February, CL rebounded with a move above 60 in early April. However, this surge fizzled quite quickly as trading turned flat the rest of April. Most recently, CL declined sharply on Thursday with a surge in volume. In addition, notice that the price relative has been moving lower since early March. CL is looking vulnerable here and a break below support would be bearish. Colgate Palmolive makes consumer products and is part of the consumer staples sector, which has been underperforming the broader market.
