Don't Ignore This Chart

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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.

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Don't Ignore This Chart

Infosys (INFY) Sprints To New Highs

by Greg Schnell

Infosys (INFY) Is breaking out to new highs this week. Last week it closed in new high territory even while the overall market was pulling back. Nice to see the relative strength. Now it is continuing to power higher as the overall market seems to be trying to rally into earnings. The SCTR at 96 suggests a very strong stock. The full stochastics indicator is high because the stock is at a new all time high. That doesn't mean it needs to be sold. With no overhead resistance, this stock could continue to run.  I produced another edition of The Final Bar Read More 

Don't Ignore This Chart

Wide rotation for ALGN on RRG

by Julius de Kempenaer

This (DAILY) Relative Rotation Graph shows the rotation of the Health Care stocks against their XLV benchmark. One stock really stands out because of its wide rotation.  ALGN crossed over into the leading quadrant, from improving, last May and sharply moved higher on the price chart since then while building up a solid uptrend in relative strength. This push higher lasted until roughly mid-June when price and RS peaked roughly at the same time. On the Relative Rotation Graph, the tail of ALGN rolled over and started Read More 

Don't Ignore This Chart

Royal Gold (RGLD) Tries To Make New Highs

by Greg Schnell

I fully realize how beaten down the price of Gold is. What makes this chart more interesting is that it has been climbing even well Gold has gone lower. So not only does it have technical strength relative to Gold, it is also starting to outperform the $SPX. This is shown by the rising line on the purple area chart. One other clue I like is the SCTR is moving above 75 suggesting the price action is becoming one of the top performing stocks. If this stock pushes to new highs next week, it is well set up for the move. The price is consolidating just under Read More 

Don't Ignore This Chart

A Sale At Starbucks (SBUX)

by Greg Schnell

Have you ever had a friend say they wanted to get into a stock because it was on sale? While shoppers love the word SALE, it does not always mean value. In this case it's Starbucks. Once again, the stock fails as Howard Schultz retires. With new store openings in China at a rate above one a day, it's crazy to believe the chart could be breaking down. But it is. The RSI says it is entering a new bear market. The full stochastics don't look ready to turn higher any time soon. The PPO has just crossed below zero which suggests staying away until it can Read More 

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Oil & Gas Equip & Services SPDR hits Reversal Zone, but Lags Oil

by Arthur Hill

The Oil & Gas Equip & Services SPDR (XES) is trading near a potential reversal zone, but the ETF is not keeping pace with strength in oil. The first chart shows XES, the Light Crude Continuous Contract ($WTIC) and the Correlation Coefficient for the two. XES bounced between 13 and 19 over the past year and is currently just above the midpoint of this range. Perhaps there is a slight uptrend at work here. Performance wise, XES is up around 13% over the past year and oil is up a whopping 60%. In contrast to the weak uptrend in XES, oil is in a strong Read More 

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$NYA Chart Cracks To Start The Week

by Greg Schnell

Everyone still believes this bull market has a lot more legs. While the large-cap technology stocks dominate the weighting in the big indexes, the $NYA chart has been an important chart for timeliness for the overall picture in recent history. Even more important perhaps is the last two trend lines broke around the end of June. The chart above is a weekly chart and the week closes on Friday, not Monday. It is important to watch price action closely over the next few days. Friday also brings the End of Day, End of Week, End of Month, End of Quarter data point for the markets Read More 

Don't Ignore This Chart

Canadian Natural Resources (CNQ, CNQ.TO) Looks Ready To Pop

by Greg Schnell

Canadian Natural Resources (CNQ had a stellar Friday with a big move of 5%. However, the intriguing price level for me is right here. We can see the stock has been setting up higher lows for the last year. The push today to get back to the 40 WMA is good, but the real opportunity is getting a chance to buy the stock again at the previous breakout level.  There are a couple of other supportive clues on the chart. Whenever the SCTR goes above 30, the stock does pretty well. The Full Stochastic is trying to turn up here right at 40. When the stock turns up around 40 or 50 on the full Read More 

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Francesca's (FRAN) Finally Gets A Positive MACD

by Greg Schnell

Francesca's Holdings (FRAN) is in the ultra competitive apparel retailer industry. This chart has been a real difficult stock since it IPO'd 5 years ago. I like the nice base that it built in 2018 and has now started to break towards 52 week highs. With the SCTR moving to the 75 level I am started to be interested if it can make new 10-month highs. With the positive employment trends and the strong apparel retail industry, this looks set to participate in the industry moves. There is some nice volume starting to hit the stock in the bottom right hand corner of the chart Read More 

Don't Ignore This Chart

Paypal Guns for a New High

by Arthur Hill

Stocks making new 52-week highs are clearly in uptrends and leading. Even though Paypal is just shy of a 52-week high, the bigger uptrend and wedge point to new highs in the near future. First and foremost, Paypal is in a long-term uptrend because the 50-day EMA is above the 200-day EMA and the close is above the rising 200-day EMA. After hitting a new high in late January, the stock corrected with a large falling wedge into mid May. This correction was needed to work off the overbought conditions created in January. The falling wedge is a typical pattern for a correction and the Read More 

Don't Ignore This Chart

Ross Stores Stalls after Breakout

by Arthur Hill

Ross Stores was hit hard with a high volume gap down in late May, but immediately firmed and recovered. The stock broke out of a long triangle in early June and then stalled with a small flag last week. Basically, we have two bullish continuation patterns at work.   The long-term trend is up because the 50-day EMA is above the 200-day EMA and the stock recorded a 52-week high last Monday. With the long-term trend up, the long triangle consolidation is considered a bullish continuation pattern. The breakout, therefore, signals an end to this rest period and a resumption of the bigger Read More 

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