Don't Ignore This Chart

StockCharts.com Icon
About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

Latest Posts

Don't Ignore This Chart

The Dollar Beats All Currencies In The G10 Except For The Japanese Yen

by Julius de Kempenaer

Relative Rotation Graphs can be used to visualize the relative movement of much more than just stocks and sectors. In the example below, the RRG shows the relative rotation for the G10 currency universe using USD as the base currency. In this case, you will see nine currencies, all expressed in USD terms, rotating around the USD. Because currency pairs in and of themselves are already relative strength lines, we need to set the "Benchmark" for this RRG to $ONE. Looking at the chart Read More 

Don't Ignore This Chart

GE Takes the Lead with a 3-month High

by Arthur Hill

I featured GE in mid-May as it attempted to break out of a falling wedge (DITC on May 15th). The breakout failed as the stock fell back in May, but a higher low formed and a triangle evolved. Overall, some sort of bullish consolidation formed from February to June and the stock is attempting another breakout. The chart shows GE with the failed wedge marked in gray and the current triangle marked in blue. Notice that the stock held support in the 9 area with bounces in March, April and late May. This is positive because it reflects a basing process with a clear support zone to watch going Read More 

Don't Ignore This Chart

WYNN Turns To Winning

by Greg Schnell

Wynn Resorts (WYNN) is a gambling stock with nice trending runs in both directions. In a favorable scenario, owning this stock could allow you to make some significant gains in a short period of time. However, due to the stock's volatility, it will need to be traded as soon as it rolls over in order to capture any gains. The first signal we're seeing for an entry into the stock is a full stochastic signal. This move above 20 is starting to accelerate higher. Looking left on the full stochastic indicator, we can see that the full stochastic is firing off a lot of false signals down Read More 

Don't Ignore This Chart

Illumina Rises above the Biotech Crowd

by Arthur Hill

It has been a rough three months for many biotechs and the Biotech iShares (IBB), but Illumina (ILMN) rose above the crowd with a big gain and three month high. The long-term chart also looks bullish. The table below shows the Biotech iShares and the top ten stocks (sans Celgene) ranked by the 3-month Rate-of-Change. I left out Celgene because it is being acquired by Bristol Meyers (BMY). Notice that IBB is down 8.73% and eight of the top ten stocks are down. Gilead (GILD) is up a little and Illumina (ILMN) is the runaway leader with an 11.25% gain. On the Read More 

Don't Ignore This Chart

Weyerhauser $WY Cuts Up A Nice Pattern

by Greg Schnell

Weyerhauser (WY) is a forestry stock with a nice pattern setup. As a commodity stock, we want to buy near the lows. While this week's move was aggressive, it is happening industry-wide; through mill closures to slow supply, the stocks are starting to respond. The Full Stochastic is firing off a signal on this 5.25% dividend payer. I like the higher low on the PPO momentum indicator as well. Notice how high this momentum low on the PPO is compared to the previous low. That change in momentum is the type of price pattern we see near lows. If the stock can break through the Read More 

Don't Ignore This Chart

Real Estate Is Getting Back In Shape!

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows the sector Real Estate (XLRE) inside the weakening quadrant, but that sector moving upward (almost vertically) on the JdK RS-Momentum scale. This type of rotation usually indicates that a second (or third, etc.) leg of a relative uptrend is about to get underway. Inspection of the unadjusted* price chart of _XLRE below shows that this sector cleared an important overhead resistance area in March and broke out of a three-year range. Following a re-test of the breakout level, Real Estate is now pushing Read More 

Don't Ignore This Chart

Ford Shines within a Rather Dull Auto Group

by Arthur Hill

It has been a tough three months for most auto stocks with the Global Auto ETF (CARZ) falling around 1.22%. In contrast, the S&P 500 SPDR (SPY) is up 4.21% since March 11th. Within the group, Ford (F) Daimler-Chrysler (DDAIF) and Toyota (TM) show gains during this period, while the other six show losses. Note that Tesla is by far the biggest loser with a 25% decline. Ford is the clear performance leader and the price chart also looks bullish. First and foremost, the long-term evidence points to an uptrend here.  The stock broke above its September-December Read More 

Don't Ignore This Chart

eBay Is Worth Revisiting $EBAY

by Greg Schnell

eBay (EBAY) had a nice run from mid-2016 to January 2018, but trended down all of 2018. Since then, though, eBay has wiped out most of that drop and now sits at a pivotal $38. The chart below tells the story better. The SCTR shows eBay outperforming most other stocks, which is a good start. I particularly like the breakout in relative strength and the full stochastic turning up while staying above 20. In general, that is a bull market trait. The price consolidating sideways after such a big thrust up in early 2019 is pretty normal. It seems more likely that Read More 

Don't Ignore This Chart

Mind the Gap in JP Morgan

by Arthur Hill

Stocks moved sharply higher last week with several bouncing off broken resistance levels with gap reversals. JP Morgan is one such stock and last week's gap becomes the first area to watch going forward. The chart shows JPM breaking out in mid April with a surge to the 116 area. The stock then fell back to the breakout zone around 106 and found support here. This is a classic tenet of technical analysis: broken resistance turns support. In addition, note that the May decline retraced 50-61.8% of the prior advance. Thus, it looks like two steps forward and one step backward (correction) Read More 

Don't Ignore This Chart

FedEx Files For Divorce $FDX, $AMZN

by Greg Schnell

FedEx announced that it has made a strategic decision to not renew the FedEx Express contract for Amazon's US domestic service. In the announcement, the press release mentioned that Amazon made up 1.3% of the total revenue for FDX. While the news sounds particularly rough, the FDX stock price traded up on the news an hour later. For technicians, the news ties in with a beautiful place on the charts. This is one of those time stamp moments. The StockCharts Technical Ranking (SCTR) indicator compares price action across the large cap stocks. The SCTR is at the Read More 

Subscribe to Don't Ignore This Chart to be notified whenever a new post is added to this blog!