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

Want To Know When To Sell? Terex Is A Perfect Example

by Tom Bowley

In September, Terex Corp (TEX) saw big volume accompany a breakout of a bullish rectangular consolidation phase.  After weeks of trending higher, momentum began to slow and TEX printed a "death" candle - a shooting star on big volume to end the uptrend.  If there's one signal that screams at me to sell, it's the combination of a negative divergence and a reversing candle on volume.  Look at the chart below: TEX is a great chart to teach Technical Analysis.  There's a clear uptrend leading to a top in early August.  Then we see a continuation pattern and Read More 

Don't Ignore This Chart

Proctor and Gamble (PG) Prints An Outside Reversal

by Greg Schnell

Procter and Gamble (PG) printed an outside reversal this week right near the lower Keltner channel line. While the chart of Proctor and Gamble is trending higher, it's always important to find a nice entry. This week fits the criteria with a couple of indicators drawing our attention. First of all, this is typically as weak as PG gets compared to its peers on the SCTR indicator. Secondly, the full stochastic dipped below 20 and looks set to rise here. Most of the signals off the full stochastic were profitable. On the price panel, the reversal was right near the lower Keltner Read More 

Don't Ignore This Chart

Selling Allows PNC Financial To Unwind For Solid Reward To Risk Trade

by Tom Bowley

While it would be great for the stock market to rise every day without any selling whatsoever, that's just not practical.  As a trader, I await episodes of selling to set up much better reward to risk trades in stocks that remain in long-term uptrends.  Enter PNC Financial (PNC).  On October 13th, PNC reported revenues ($4.13 bil vs. $4.11 bil) and EPS ($2.16 vs. $2.13) that beat Wall Street consensus estimates and that's helped PNC lead the banking group higher.  But the selling the past few trading sessions has now set PNC up as a potential trade: Slowing Read More 

Don't Ignore This Chart

Fiserve Shows Resilience with Move into Gap Zone

by Arthur Hill

Fiserv gapped down and fell on big volume last week, but the candlestick points to an accumulation day and the Accumulation Distribution Line hit a new high. First and foremost, the big trend is up because Fiserve hit a 52-week high with a move above 130 in late October. FISV then gapped down with an open around 124 and closed lower on the highest volume of the year. Despite the lower close, I think this was an accumulation day because the stock dipped below 121 during the day and closed near the high of the day. This candlestick looks like a massive hammer and the ability to close near Read More 

Don't Ignore This Chart

ConocoPhillips (COP) Makes New Two Year Highs

by Greg Schnell

ConocoPhillips (COP) has been on a roll since July, but this week it broke out to new two-year highs. The oil stocks are well positioned to go on a roll. I detailed this in the Commodities Countdown Video Recording 2017-11-02. The COP chart above has a couple of textbook signatures. The MACD has moved back above the zero line. The Full Stochastics have moved above 80 which is excellent and the SCTR ranking has headed into the top quartile above 75. In early October, the 10 Week crossed above the 40 week moving average for a positive alignment and this looks set to Read More 

Don't Ignore This Chart

Schlumberger Springs a Bear Trap with Big Volume

by Arthur Hill

Schlumberger (SLB) broke support with a surge in volume, but this support break did not hold as the stock surged with strong volume the last two weeks. The decline below 62 looks like a selling climax because of high volume and the gap down. The surge in volume flushes out of the sellers and paves the way for a bounce. SLB got its bounce with a two week surge that exceeded the 50-day EMA today. Notice that volume was above average five of the last nine days. I am not counting today's volume because the day is incomplete. Despite early signs of a bottom, the overall trend remains down with Read More 

Don't Ignore This Chart

IBM Fails To Hold Moving Average Support, Now Looks To This Key Level

by Tom Bowley

IBM has been a very interesting stock to watch, but not to own.  After 23 consecutive quarters of declining revenues, traders finally found something to be excited about in IBM's latest quarterly earnings report.  Five years ago, IBM traded near 165.  At Friday's close, it was approaching 150.  Big Blue has been an even bigger disappointment.  In its earnings report on October 17th, however, IBM beat its revenue estimates by nearly a half billion dollars and its EPS edged out estimates by two pennies.  That was enough to light a fire under its stock price as Read More 

Don't Ignore This Chart

S&P 500 in nose bleed area? ... Not from this perspective!

by Julius de Kempenaer

The Relative Rotation Graph above plots a number of world equity markets against the FTSE all-world index and shows their relative rotation around this benchmark. With all the chatter going around on the S&P 50o index camping in the nose-bleed area this gives a refreshing angle to look at the current state of world-affairs (at a stock market level that is ..). The markets on the right, inside the weakening quadrant, are Hong Kong ($HSI), Emerging Markets ($MSEMF), and China ($FTX). If you click on the chart and open the live version you can scroll back through Read More 

Don't Ignore This Chart

Ford Stalls before Making Next Move

by Arthur Hill

Ford (F) consolidated after a big advance and this consolidation looks like a bullish continuation pattern. First, industry group strength and the long-term uptrend are in Ford’s favor. Ford is part of the red-hot Global Auto ETF (CARZ), which is up over 20% from its April low and trading near a 52-week high. Long-term, Ford broke a big resistance zone in September and the 50-day EMA moved above the 200-day EMA in October. After a 19% -trend-reversing advance, the stock was entitled to a rest and this is exactly how a consolidation works. The trading range digests the gains, alleviates Read More 

Don't Ignore This Chart

Volume Confirms Breakout For WellCare Group

by Tom Bowley

WellCare Group (WCG) posted quarterly earnings that beat Wall Street consensus estimates and the stock soared above recent price resistance.  Volume surged as traders accumulated the healthcare provider.  The Dow Jones U.S. Health Care Providers Index ($DJUSHP) broke out recently and WCG has performed exceptionally well on a relative basis: WCG broke its down channel a couple of weeks ago and has seen its SCTR (StockCharts Technical Rank) rising ever since.  Tuesday's breakout was accompanied by the heaviest volume of 2017, suggesting that WCG is under accumulation.  Read More 

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