Don't Ignore This Chart!

CVR Refining Shows Relative Strength and Chart Strength


Stocks were hit hard in mid August with the S&P 500 and many stocks plunging below their spring-summer lows. This means stocks that held their summer lows are by definition showing relative chart strength because they did not break a key level. The chart below shows CVR Refining (CVRR) hitting a new high for 2015 and then falling back towards the July lows. These lows held as the stock bounced last week with a surge above 19. This bounce off support is quite positive and the August highs are the next challenge. The indicator window shows the SCTR breaking out in July and hitting a new high for 2015. Notice that this breakout just before the wedge breakout on the price chart. Overall, the SCTR held up well in August and this means CVRR retained its relative strength. 

Click this image for a live chart.

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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