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

Is NVDA The Strongest Stock In The Strongest Sector?

by Julius de Kempenaer

Looking over some Relative Rotation Graphs this morning showed me that the Information Technology sector is currently the strongest sector in the S&P 500 universe. XLK is positioned well inside the leading quadrant and is being powered further into that space by a long tail. It is difficult to conclude anything other than that this is a strong rotation. Bringing up the weekly data, the RRG for technology stocks against XLK shows an image with a high concentration of stocks on the right-hand side of the graph (= positive territory) with tails pointing Read More 

Don't Ignore This Chart

Japan ETF Stalls At The Wall $EWJ $NIKK

by Greg Schnell

Japan is a market that I like to keep an eye on, as it's a big participant in the global economy. This week, the Japan ETF is in focus as it tries to get through the 200-day moving average, as well as make a topside breakout through a key resistance level. During major downturns like 2015, 2011, 2008 and 2000, the 200-DMA is a good moving average to keep tabs on after it goes below. With the bond market starting to fire off some significant clues, it also suggests a need for increased caution if these levels cannot be broken. Today, Japan Read More 

Don't Ignore This Chart

What Part of Advanced Auto Parts' Chart Do You Like?

by Greg Schnell

Advanced Auto Parts (AAP) has been struggling around the 170 level for years and we are back to that level once again. The SCTR has been strong, having recently pulled back as price consolidated through the first quarter. The SCTR is a method of comparing the strength of price moves across a group of stocks. I like to find stocks moving into the top quartile (i.e. above 75).  The full stochastic is moving back above 50, which is also good on a weekly chart. The PPO is a momentum indicator. There are four real phases of momentum: rising below zero, rising above Read More 

Don't Ignore This Chart

Financials Are Not Looking Very Strong But In That Sector Regional Banks Should Really Be Watched

by Julius de Kempenaer

On the Relative Rotation Graph for US sectors, the Financials sector (XLF) is not in the best shape at the moment. It is positioned inside the lagging quadrant and heading lower on both axes. So, not much good there. At the moment I am in New York City to attend the CMTA symposium together with Arthur Hill, David Keller and Greg Schnell (and 300 other technical analysts). Obviously, we are discussing among ourselves as well.  My chat with Greg last night inspired this DITC chart. We discussed the weak position of the financials sector in the current market Read More 

Don't Ignore This Chart

Is there a Biotech Breakout in the Making?

by Arthur Hill

The Biotech SPDR (XBI) is trading at a make-or-break point as it consolidates near the 40-week SMA. Traders should watch for the resolution of this consolidation because it will dictate the next directional move. The chart below shows XBI surging from the mid 60s to the lower 90s and then stalling with a small triangle. Technically, a small triangle is like a pennant, which is a bullish continuation pattern. A pennant breakout would signal a resumption of the prior advance and target a move to new highs. At this point, I have a bullish bias on XBI and expect a Read More 

Don't Ignore This Chart

Take Two Suggests Looking Twice At This Setup $TTWO

by Greg Schnell

Take Two Interactive (TTWO) has made repetitive lower lows for a while and continues to be in a big downtrend. However, this stock has showed up on some of my scans this week and appears set to change direction. If it does start climbing from here, the stop can be set nice and tight so that the risk-reward is excellent. A return to prior highs would be a 40% move. There are three things to note here. Firstly, the PPO is turning up. Secondly, the full stochastic made a nice double bottom. Thirdly, the price looks like it is breaking out above the horizontal support/resistance Read More 

Don't Ignore This Chart

AT&T Makes a Break for It

by Arthur Hill

AT&T (T) was one of the worst performing stocks in 2018 with a 20% decline and 52-week low in late December. 2019 is starting out much better with a double-digit gain and a break above the November-February highs, which also mark neckline resistance of an inverse head-and-shoulders pattern. The inverse head-and-shoulders pattern is a bullish reversal pattern that marks a trend change (from down to up). The left shoulder formed from late October to early December, the head with the December low and the right shoulder with the February-March lows. The peaks across the pattern mark Read More 

Don't Ignore This Chart

Failed Breakouts Can Be Bigger Clues

by Greg Schnell

On Tuesday, I published an article on the breakout in the gold miners, wherein I showed three charts that supported the thesis of Gold and gold miners going higher. One of the benefits of technical analysis is knowing when you are wrong. With the reversal of the gold chart at a critical level, the expectation of a down movee in Gold is now in play. Why the quick flip?  When trading a breakout where the breakout fails to hold, it can be more important to recognize the failure than to stubbornly hold on to the trade. This time, it is the gold miners being hit by the failed Read More 

Don't Ignore This Chart

Triple whammy for UNH suggests more weakness ahead!

by Julius de Kempenaer

The weekly chart for UnitedHealth (UNH) shows a steady uptrend in both price and relative (vs $INDU) since the start of 2016. That three-year move just came to an end. The uptrend in relative strength emerged out of the low that was set in late 2015. Since then, UNH is showing a steady series of higher highs and higher lows in relative strength against the DJ Industrials index. The red support line in the middle pane above marks that trend over a period of more than three years. The RRG lines in the lower pane follow that relative uptrend higher Read More 

Don't Ignore This Chart

Gold Miners Are Shining

by Greg Schnell

Gold miners have really started to shine of late. The SCTR ranking of GDX, which represents the gold miners as an ETF, pushed up a couple of months ago. After surging to new 52-week highs in February, the gold miners quickly pulled back. This week, they look set up to really push to higher highs. The relative strength is breaking a 3-month downtrend after having startied a fresh surge in October. The PPO has been staying above zero, illustrating a positive momentum.  There are a few other factors that look solid. The miners are breaking a long trend of underperforming Read More 

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