Don't Ignore This Chart!

Getting in (f)LOW(serve)


FLS is a stock that has been pretty much off the radar for two years as a potential long candidate, but this looks to be changing now!

After breaking out of an almost perfect symmetrical triangle in 2014, FLS trended lower until the beginning of this year, when a low ($33.72) formed in the support area offered by the high-low rotation in 2012.

Before the break above the falling resistance line, divergence started to show up in both the MACD and the RSI which often is a prelude to a move higher or, at least, a pause in the existing trend.

Last week the stock price bounced off the horizontal resistance level near $ 47.50 after the recent rally out of the January low. This decline looks to be setting this stock up for renewed buying opportunities either around the level of the 20-day SMA or if that does not hold the September 2015 low near $ 39.

All in all downside risk seems to be fading while upward potential is growing, especially when resistance at $ 47 can be taken out.


Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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