Art's Charts

A Lot of Resistance Around

Arthur Hill

Arthur Hill

Chief Technical Strategist, TrendInvestorPro.com

-- Financial stocks showing relative weakness
-- Stocks trading near resistance and overbought
-- Bullish considerations


After a big advance the last 9-10 weeks, many stocks are running into resistance. In addition, many are are overbought and ripe for at least a correction or consolidation. The same can be said for many indices and ETFs. The next group of charts highlights stocks trading near resistance after sharp advances.

 090428fdx

 

FedEx (FDX) is hitting resistance from broken supports and the 50% retracement. Also notice that the stock is up over 50% without a correction and the Commodity Channel Index (CCI) has been overbought for most of the last five weeks. Even though the trend since early March is up, the stock looks awfully vulnerable to a correction.

  090428nue

 

Nucor (NUE) surged to trendline resistance in early April and then stalled. Selling pressure got the better part of the stock as it declined rather sharply the last three days. With resistance established below the February high, a lower high is now taking shape. The bottom indicator shows MACD moving below its signal line as momentum deteriorates.

 

090428tdw 

Tidewater (TDW) is hitting resistance from the top of its recent trading range. The stock has been bouncing between the low 30s and the mid 40s since October. After a 40% surge over the last two months, the stock is overbought and at resistance. Notice that the Stochastic Oscillator is trading above 80.  

 090428chrw

 

CH Robinson (CHRW) is nearing range resistance after surging over 30% in less than two months. The stock established support around 37-38 with two big bounces in October and March. Resistance around 56 stems from the September-January highs. CHRW gapped higher last week, but further upside looks limited with resistance close at hand. Also notice that the Stochastic Oscillator is overbought as it trades above 80.

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More