Don't Ignore This Chart!

Dun & Bradstreet Breaks Out of Consolidation To Lead Publishers

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The Dow Jones U.S. Publishers Index ($DJUSPB) has broken a downtrend on its weekly chart and Dun & Bradstreet (DNB) is one of the best looking companies within this index.  DNB posted revenues and EPS that bested Wall Street consensus estimates on Monday after the bell, then proceeded to clear multi-year price resistance on heavy volume.  A strengthening stock within a strong sector (in 2016) is normally a smart way to ride a bull market.  Check out the chart:

There's a lot to like about this chart, but it could get better.  The DJUSPB has been downtrending vs. the S&P 500 since 2013, but it's on the verge of making a relative breakout.  The red arrow near .1375 is a relative level to watch.  A breakout would suggest publishers are likely to remain a relative outperformer and given DNB's strong quarterly earnings results and high SCTR rank, I'd look for this stock to remain a leader in the group.

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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