- Charts Worth Watching: BIIB, DHR, ERTS, GPS, HAS, JBHT, KEY, LMT, LUB, MDT
- Link to today's video.
- Next update will be Tuesday (August 4) by 7AM ET.
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After retracing 50% of its prior decline, Biogen Idec (BIIB) broke wedge support with a sharp decline over the last two days. Also notice that the stock shows relative weakness as the price relative moved to a new low.
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Danaher (DHR) firms after gap down. DHR hit resistance last week and gapped down on high volume. Even though the stock firmed over the last four days, the resistance failure and gap remain bearish. Only a move above 63 would argue otherwise. A break below 60 would signal a continuation lower.
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Electronic Arts (ERTS) remains within a consolidation as it underperforms the overall market. After a sharp decline in June, the stock formed a triangle in July. There was a high volume decline last week and then some firmness this week. At this point, the odds favor a continuation lower. A break above 22 would turn the tide for the bulls.
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It is a tale of two wedges for Gap (GPS). The stock broke the falling wedge trendline three weeks ago, but did not follow through last week or this week. As such, a small rising wedge is taking shape and a break below last week's low would be bearish. GPS is also showing relative weakness as the price relative declines in June-July.
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Hasbro (HAS) challenges flag resistance. After a very sharp surge above 26, HAS consolidated with a tight flag the last nine days. The stock attempted a breakout on Thursday, but fell back. Look for a move above yesterday's high to put the breakout back on again.
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If this recovery is for real, then we should see truckers like JB Hunt (JBHT) start to participate. The stock has been underperforming the overall market with its July decline. There was a surge last week, but JBHT hit resistance from the channel trendline. Look for a break above 29 to reverse the two month downtrend.
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Key Corp (KEY) continues to attract volume. This banking stock has a double bottom working with support around 4.5. KEY is now up four of the last seven days with above average volume. In addition, the stock is poised to break resistance from the July highs.
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Lockheed Martin (LMT) remains under pressure after a support break at 77.5. This defense contractor stalled around 75, but shows no signs of strength for a bounce. Downside volume remains above average as well. Defense has got to be tempting for those looking to cut the deficit.
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Luby's (LUB) is showing signs of life with a bounce over the last two weeks. The stock surged in March, pulled back in May and then established support around 4. The three week bounce off support is a good start. Now let's see if the price relative can turn up and volume can increase.
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Medtronic (MDT) is quietly challenging resistance from the June highs. This medical device maker formed a triangle from June to early July. The mid July surge exceeded triangle resistance and the stock stalled the last two weeks. The breakout is holding and MDT is clearly in bull mode as long as last week's low holds.
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