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

This Big Pharma Stock is Closing in on a New High

by Arthur Hill

Johnson & Johnson (JNJ) started the year on the wrong foot with a double digit decline the first six months. After hitting a 52-week low in late May, the stock turned around and advanced some 20% the next four months. Even though the stock remains below the January high, the big trend is up and this is the path of least resistance. The chart below shows JNJ above the rising 50-day EMA and rising 200-day EMA. In addition, the 50-day EMA is well above the 200-day EMA and the stock is less than 2% from a 52-week high. JNJ caught my eye because Read More 

Don't Ignore This Chart

Mosaic $MOS Is Pushing More Outperformance

by Greg Schnell

Mosaic shot to a fresh new high today, continuing the uptrend. While the broader market has been trying to bounce, we can see this stock has been on the move for a while. This beautiful uptrend was hardly interrupted by the recent broad market slide. Today the stock rocketed 10% to resume the push to new highs.  The SCTR has been trending higher over the last year. While the stock was rising, the SCTR was just middle of the pack, but over the last few months the stock has really started to be a top performer by being pinned near the top. The relative strength has been climbing. This Read More 

Don't Ignore This Chart

How to (not) Trade the Elections

by Arthur Hill

The US elections are on Tuesday and the financial press is full of tips based on possible outcomes. Basing a financial decision on a news event means we must get two things right. First, we must successfully predict the news (election results). Second, we must then successfully predict the market's reaction to the news. Double parlays are hard to hit. More often than not, the market reacts and the press then picks the news twist that best fits the reaction. Bonds plunged on Friday and weakness was attributed to better-than-expected growth in non-farm payrolls, never mind the long-term Read More 

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Airline Stocks May Rise On Crude Weakness

by Greg Schnell

The airline stocks have been mudding around. They have stayed in a giant trading range. I noted on my chart last year Warren Buffet had been buying airline stocks. Well, its been a zero gain trade. The airlines bounced last week at support and are bouncing up. One consideration is the $15 drop in Crude could help the airline margins for the fourth quarter. One of the better airline charts is United Airlines (UAL). The chart has had a strong SCTR recently. It broke above horizontal support at $77.50 in mid October and has now bounced up to retest the highs. The improvement in relative Read More 

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Campbell Soup is Looking Rather Bland

by Arthur Hill

Soup season is upon us, but Campbell Soup ($CPB) is having none of it as the stock trends lower and lags its sector, the Consumer Staples SPDR (XLP). First and foremost, the long-term trend is down with a 52-week low in June, the 50-day below the 200-day and the 200-day EMA falling. The stock bounced back to the 200-day in August, but turned back down the last few months. CPB gapped up in June and held this gap for over a month, but selling pressure picked up again in August and the stock broke support levels. Note the lower lows in late August and September. The stock is currently Read More 

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Tiffany's Lines Up Support $TIF

by Greg Schnell

Tiffany's stock has pulled back 25% since July. While that is not good, it is very similar to a significant number of consumer discretionary stocks. There are lots of nice setups on retail stocks currently. Tiffany's lines up support at $100. The $SPX made it's low so far this week, but Tiffany's is building on a bounce off the $100 level last week.  A few of the indicators look ready to turn but the PPO only appears to be heading lower. If the histogram can start to improve here, that would be a start. The full stochastic below 20% looks like a nice place to find a reversal Read More 

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Comparing the Current Month with the Last 20 Years

by Arthur Hill

The S&P 500 is down around 7.5% so far this month and this is shaping up to be the worst monthly decline in over five years. Keep in mind that there are still a few days left in October and the last monthly bar will not complete until the close on Wednesday. The seven blue lines and one red line show eight monthly declines that exceeded 8%. The first four occurred during the bear market in 2001-2002, the next three in the bear market in 2008-2009 and the last in early May 2010 (flash crash). The biggest monthly decline in the last 20 years occurred in October 2008, which was smack dab Read More 

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Amazon $AMZN Sets Up For The Holidays

by Greg Schnell

Amazon has had a rough month in October. With the stock dropping $450 or 20% from its highs, it is clearly being marked down. The real question is can we buy the stock for the holiday season? Can Amazon be a set up for the holiday season? I like the weekly Full Stochastic signal here. This is a once a year signal that shows up for Amazon and typically leads to a great run in the stock.  This means the stock is in the setup zone and we need to wait for a confirming signal to buy if you are a weekly chart investor. The last time price dipped below the 40 Week moving average was on the Read More 

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Can I have some fries with that please?

by Julius de Kempenaer

On the Relative Rotation Graph holding the 30 stocks in the DJ Industrials index, McDonald's (MCD) is one of the names that pop up as potentially interesting. The stock is positioned inside the improving quadrant for a few weeks now and moving towards the leading quadrant at a strong RRG-Heading. Especially the last segment of the trail shows the increasing relative strength against the S&P 500. Bringing up the price chart for MCD this morning was actually a pleasant surprise among all the misery on global stock exchanges around the Read More 

Don't Ignore This Chart

This Software Stock is Holding up Well in October

by Arthur Hill

The pickings are getting slim after sharp declines in October, but some stocks are holding up better than others. The Software iShares (IGV), in particular, held up better than most industry group ETFs and Adobe (ADBE) is a leader in this group. The chart below shows Adobe falling sharply in the first half of October, but managing to hold the summer lows and 200-day SMA. The S&P 500, in contrast, broke its 200-day during the October decline. This means Adobe is holding up better. On the price chart, the stock bounced off support in mid October and managed to hold Read More 

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