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

Caterpillar Crawls Out Of A Trench (CAT)

by Greg Schnell

Caterpillar moved above the 200 day moving average this week to get out of the trench it was building. This trench has been a gentle correction from a massive uptrend in 2017. The SCTR is returning to 75 which is a great signal of strength. Notice the SCTR behavior in 2017. The shaded area chart shows the $SPX relative strength moving to new 3-month highs.  Price is breaking above the channel with big volume. Lastly the momentum shown on the MACD has moved above zero. Looking left, that is a big change. As long as it holds the 200 day moving average, this Read More 

Don't Ignore This Chart

Canadian Healthcare and Financial Services winning over Energy

by Julius de Kempenaer

While browsing through some pre-populated RRGs on the site I stumbled upon the chart holding Canadian sectors. What immediately triggered me was the sharp move of the Healthcare sector into the leading quadrant at almost 45 degrees which means that the sector is moving higher on both axes which is a strong sign. In a closed universe like this, if something moves up something else must go down to offset the move. And in this case, that seems to be the Energy sector which just crossed over into the lagging quadrant in pretty much the exact opposite direction as Healthcare. Read More 

Don't Ignore This Chart

Disney Hits Potential Reversal Zone

by Arthur Hill

Disney hit a new high in early August and pulled back into September. The stock is part of a strong sector, consumer discretionary, and this pullback reached a potential reversal area. First and foremost, the long-term trend is up because the stock formed a higher low from October to April and a higher high from January to August. The August high was also a 52-week high and the 50-day EMA is above the 200-day EMA. After hitting a new high, the stock retraced around 61.8% of the prior decline with a decline back to the 109 area. This retracement amount is Read More 

Don't Ignore This Chart

Procter & Gamble Attempts to Turn

by Arthur Hill

The Consumer Staples SPDR (XLP) has been leading the market since early May and Procter & Gamble is the largest stock in the sector (12.58%).  On the price chart, PG is in the midst of a long-term trend change and the short-term trend is also turning up. First and foremost, the long-term trend is turning up as the 50-day EMA moves above the 200-day EMA. This crossover is still in the early stages, but it is a positive sign as long as it holds. As with XLP, PG is leading over the last four months, but lagging over the past year because it remains well below Read More 

Don't Ignore This Chart

United Technologies (UTX) Pushed The Penthouse Button

by Greg Schnell

United Technologies is a member of the Dow Jones Industrial Average. While this is a high profile group of stocks, the other stocks are commonly stealing the spotlight. This week, United Technologies (UTX) pushed the penthouse button to break above the trading range.  The chart features a few nice technical points.  When a stock has an SCTR oscillating between 25 and 75, it is just an average stock. In this case, UTX is guilty of that, with similar price profile to the $SPX. That's not bad, but we are trying to buy outperformance not Read More 

Don't Ignore This Chart

Henry Schein Starts to Shine

by Arthur Hill

Outside of company specifics, the broad market environment and the sector are the biggest influences of a stock's price. The S&P 500 hit a new high recently so we are in a bull market. The Health Care SPDR (XLV) also hit a new high recently and it is one of the leading sectors. This combination bodes well for stocks in the healthcare sector and I will highlight a breakout in Henry Schein (HSIC), a company that supplies dental products and services, as well as healthcare products and services. First, the long-term trend is up. The chart shows a large inverse Read More 

Don't Ignore This Chart

Alaska Air (ALK) Rises Above The Clouds

by Greg Schnell

The airlines are a mixed bag currently. American Airlines (AAL) has an ugly chart. Alaska on the other hand is leaving the runway and starting to rise above the clouds of 2018. There are new fresh breakouts occurring on this little pullback. Try to find stocks that might be able to find higher ground. With the global weakness, I would be inclined to keep stops tight. Good trading, Greg Schnell, CMT, MFTA Read More 

Don't Ignore This Chart

Sonic (SONC) Looks Strong

by Greg Schnell

Sonic recently (June) broke above a big sideways basing pattern. It looks like Sonic is now ready to break above a consolidation after the sudden surge. The weekly chart also gives us a reason for optimism. The weekly is a clear breakout from years of channel trading.  Attached are some recent videos I have posted. The Final Bar covers the breakdown on European indexes this week.  Here is the Commodities countdown video for the week. Bonds have Read More 

Don't Ignore This Chart

Germany Starts September With Some Trend Line Breaks

by Greg Schnell

While all of the European markets had a tough week, the chart of Germany is snapping a couple of very major trend lines on a weekly and monthly basis. How September ends will be important for the monthly charts as two major things are currently setting up that we have not seen in a while.  First of all on the monthly chart, this is the first breach on the 2009-2018 trend line. Obviously it is early in the month, but we shouldn't ignore a 9-year trend line as it is breaking. The 10 month moving average is in blue and it is broken as well. The third thing of note is we are below the Read More 

Don't Ignore This Chart

One Semiconductor Equipment Stock Stands Out

by Arthur Hill

The Semiconductor SPDR (XSD) broke out to new highs last week and hit another new high on Tuesday. Despite strength in this broad-based semiconductor ETF, there are still pockets of weakness within the group. Namely, the semiconductor equipment stocks have been weak in 2018. These include Applied Materials (AMAT), Lam Research (LRCX) and Teradyne (TER). One semiconductor equipment stock, however, is bucking the selling pressure and should be on our radar. The chart below shows year-to-date price bars for KLA-Tencor (KLAC). Price action has been choppy most of the Read More 

Don't Ignore This Chart

The Nasdaq Exchange Tests A Breakout (NDAQ)

by Greg Schnell

The NASDAQ OMX Group (NDAQ) has consolidated recently for the last few months. For September it looks like it wants to start the month pushing for a break out to the upside. The SCTR shows the company holding in the top quartile. Relative Strength is still holding but closer to four month lows.  Like most parts of the market, the volume has been quieter lately, so I would suggest that just fits in with the overall view. I think a breakout through $96 is an attractive entry and a stop at $92 should give it room to wiggle. Good trading, Greg Schnell Read More 

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