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

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 

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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 

Don't Ignore This Chart

Bank Momentum Looks A Little Tepid

by Greg Schnell

The big banks have been wandering sideways lately. JP Morgan (JPM) spent the month trying to push to new highs. Today's price action looks a little tepid to close out the month. To review the indicators, there is a downtrend in relative strength in the shaded area. Price is stuck below the highs of the first quarter. While the volume looks weak, the bigger concern is the amount of red bars vs. green bars in the last three weeks. With only 1/3 of the bars closing positive on the day it warrants a closer look. In the zoom panel you can see the price has been jerked up on three big bars Read More 

Don't Ignore This Chart

Semis Send a Message to the Market

by Arthur Hill

Chips are leading the market again as the broad-based Semiconductor SPDR (XSD) broke out of a triangle consolidation and hit a new high. A new high in this cyclical group is positive for the technology sector, the Nasdaq and the broader market. First note that XSD has 34 components and they are relatively equally weighted. AMD, which as a market cap of $24 billion, is the largest holding (5.23%) and Intel (2.77%), market cap $224 billion, is not even in the top ten. The Semiconductor iShares (SOXX), in contrast, is weighted towards large-caps with the top ten stocks accounting for 59% of Read More 

Don't Ignore This Chart

EEM Emerging Markets ETF Kicks Off

by Greg Schnell

The emerging markets have been falling as the US Dollar was rising. With the sudden reversal on the $USD there are some charts shaping up nicely. The EEM chart has nice positive divergence on the Full Stochastic. If the $USD continues to weaken, this trade should continue to improve. For now, its a nice breakout with a signal. A stop that gets hit below last weeks low of $42 would suggest the trade is not going to work. There have been a wide variety of new videos over the last week. Here are links to them. The Canadian Read More 

Don't Ignore This Chart

Treasury Bond ETF Hits Major Road Block

by Arthur Hill

The unadjusted 20+ YR T-Bond ETF (_TLT) surged to resistance on Friday and backed off on Monday. The long-term trend is down and this resistance level could mark a near term top. First note that the chart shows unadjusted prices for TLT by preceding the symbol with an underscore (_TLT). This removes the monthly distributions from the price. Second, note that the long-term trend is down because the 50-day EMA is below the 200-day EMA and price hit a 52-week low in May. On the price chart, TLT hit resistance in the 122-123 area in late March, late May and early July Read More 

Don't Ignore This Chart

ING Bank Looks Ready To Pop Here

by Greg Schnell

ING Bank has seen some large volume surges in the last two months suggesting the potential for some capitulation low. On the MACD we can see a positive divergence in momentum. The relative strength is obviously very weak as is the SCTR ranking.  The weekly chart also has some nice information. We can see the two volume pillars are the largest in 5 years! Recently the full stochastic tried to move above 20 and pulled back but so far has a higher low. This positive divergence is worth keeping an eye on especially in light of the volume spike. The PPO and the Relative Strength both Read More 

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