Don't Ignore This Chart!

Charter Forms The Right Side Of A Cup

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Charter Communications (CHTR) extended its multi-year uptrend in late January with a heavy volume gap higher.  CHTR spent the next several weeks consolidating and unwinding very overbought conditions.  But the stock began to resume its prior strength after its RSI touched the 40s (black arrow below) and its MACD hit centerline support.  Check out the chart:

CHTR looks solid in this potential bullish cup with handle continuation pattern.  It simply needs a handle to form, preferably on lighter volume down to test its rising 20 day EMA.  CHTR has been a very solid relative performer vs. the benchmark S&P 500.  Given the bullish pattern in play, I'd expect to see that strong relative performance continue.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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