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

Healthcare Sector Takes the Lead

by Arthur Hill

The Health Care SPDR (XLV) moved into the sector lead with a 52-week high this week. As far as the charts are concern, the Real Estate SPDR (XLRE) and XLV are the only two sector SPDRs hitting fresh highs. XLV gets the edge because it is up around 11% year-to-date, while XLRE is up around 5%. The chart below shows three different versions of the healthcare sector. The EW Healthcare ETF (RYH) is in the top window, the SmallCap HealthCare ETF (PSCH) is in the middle window and the large-cap dominated SPDR (XLV) is in the middle window. The small-cap and large-cap sector ETFs hit new highs Read More 

Don't Ignore This Chart

Wait For A Few Signals On Metals

by Greg Schnell

I am in Ketchican, Alaska this morning. The sunrise is a glow as the sky is low, light rain is falling and a morning fog has enveloped the town. This town is charming and is known for it's salmon fishing which brings an abundance of revenue when the salmon are here.  There are a lot of similarities to the commodities markets right now. The charts are all gloomy and pointing down, and commodity traders want to buy the lows knowing there will be another run someday in the markets. As a technical trader, the right thing for me to do is to wait for some signals to start Read More 

Don't Ignore This Chart

Throwback Thursday for Cerner

by Arthur Hill

Cerner (CERN) remains in a long-term downtrend, but the stock broke a resistance level and pulled back to this breakout zone, which now turns into support. This is called a throwback and it could offer a second chance to partake in the breakout. First and foremost, CERN is in the early stages of a long-term trend reversal, at best. The long-term trend is still down because the 50-day EMA remains below the 200-day EMA (PPO is negative). However, the stock did exceed the May-July highs and the 200-day SMA. The breakout zone and the 200-day SMA could offer support on Read More 

Don't Ignore This Chart

BP Looks Weak Here

by Greg Schnell

BP has been moving nicely to the upside for the last few years. This week the stock has touched an important level of support. The real question is what happens now? First of all, all our indicators are pointed sown so we don't need to rush in to buy this dip. Everything seems to be getting weaker. What I am more concerned with is the PPO (momentum) has broken a long uptrend on this weekly chart. That would encourage me to give the stock time to make a better base rather than trying to buy it at this level.  The full stochastics is already oversold which is usually a nice place to Read More 

Don't Ignore This Chart

Anadarko Gets a Mean-Reversion Bounce

by Arthur Hill

Anadarko Petroleum (APC) has had quite a good year with a 25% gain in 2018 and 52-week highs in June and July. The stock fell over the last five weeks, but this decline is viewed as a correction within a bigger uptrend. Moreover, RSI became oversold and a mean-reversion bounce is now in play. First and foremost, the long-term trend is up because the stock hit a new high in July, the 50-day EMA is above the 200-day EMA and price is above the rising 200-day EMA. APC fell back to the 65 area in early August and the May lows offer support in this Read More 

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Bank Of America (BAC) Approaches Former Highs

by Greg Schnell

Bank of America (BAC) is approaching the highs hit back in March. This is technically an important setup for the stock. In the big picture, the March 2018 high had a lot less momentum than the March 2017 high as shown by the PPO indicator.  As the stock rallies up to the old highs, the PPO momentum is bouncing off the zero level. This can mean the stock is making a reset in momentum and starting its next run. However, a failure to make a higher high in momentum would suggest caution for the bulls. The green trend line on the PPO is an important place to watch the price action of Read More 

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Is The Mouse House Going Vertical? (DIS)

by Greg Schnell

With all the attention late last year on Disney with the ESPN subscription levels, the cast at Disney announced they were launching their own 'over the top' service. In July, Disney secured the buying of 21st Century Fox for $71 Billion. Needless to say, that investment is more than just a casual 'filling in some gaps' for Disney. At the completion of the deal, it is estimated Disney will own 40% of the box office. That's a wow. So with the Mouse House coming directly to your house, what do investors think? Well, they like this a lot. Disney could break out to all time highs after Read More 

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Gilead Gets another Bollinger Band Squeeze

by Arthur Hill

Gilead is in the midst of its fourth Bollinger Band squeeze in the past year. The last four instances foreshadowed pretty strong moves so I will be watching the current squeeze closely for the next directional clue. A Bollinger Band squeeze occurs when the bands contract and the Bandwidth indicator moves to the low end of its range. The chart shows Bollinger Bands shaded in pink and BandWidth in the indicator window. BandWidth measures the difference between the bands as a percentage of the closing price. Volatility contracts when the Bollinger Bands narrow and this Read More 

Don't Ignore This Chart

J B Hunt Starts Accelerating (JBHT)

by Greg Schnell

JB Hunt is one of America's largest fleets. Amassing a fleet of over 12,000 trucks and 100,000 trailers, it's clear that JBHT has a pulse across North America's industries. With 124,000 employees, this industry is people intensive and flourishes when the economy is accelerating.  I am writing this article while heading north to the Montney oilfield in Northwest Alberta. I'm feeling the highway vibe their operators enjoy as the sky constantly changes while checking out the August 2, 2018 sunset. Thursday saw the chart of JB Hunt jump as buyers Read More 

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Waters Corp Stalls Near Key Retracement

by Arthur Hill

Waters Corp led the market in 2017 with a 65 percent gain, but lagged in 2018 as the stock corrected the last six months. I am watching this correction pattern for a breakout that would signal a continuation of the bigger uptrend. Waters Corp makes analytical equipment and software for laboratories and scientists. How long and how far should a correction extend? When does a correction turn into a something more, such as a bigger downtrend? Those are, of course, the million-dollar questions when analyzing a chart. A lot depends on your timeframe so keep in mind that this is a weekly chart Read More 

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