The "3-day rule" is a basic principle that suggests traders should wait for the third day after a drop to consider entering a stock. That concept may now apply to e-commerce giant Amazon.com.
The first pattern on today’s chart is the gap lower on Thursday, one session after the Federal Reserve hammered sentiment with its "higher for longer" message. Notice how...
Crude oil has been running since early summer, but there may be signs of a top.
The first pattern on today’s chart is the “shooting star” candlestick on Tuesday. Prices climbed to their highest level of the year before reversing lower. They dropped further on Wednesday, confirming the potentially bearish reversal pattern.
Second, CL1! has been at the top of its...
Veeva Systems has been chopping higher since the spring. Now it may be offering an entry for dip buyers.
The first pattern on today’s chart is the rally after earnings and revenue beat consensus on August 30. VEEV is trying to stabilize at a 50 percent retracement of the move. If it succeeds, it could suggest an uptrend is in effect.
Second, the current price...
Uber Technologies has consolidated for the last two months, but some traders may think it’s still driving higher.
The first pattern today’s chart is the basing pattern that began in August. UBER managed to remain above its July low, even as the broader market tested levels from June. That may reflect relative strength and indicate it’s under accumulation.
Second...
Vertex Pharmaceuticals has been quietly sitting near record highs, and now some traders may look for movement to the upside.
The first pattern on today’s chart is the tight consolidation pattern since early August. VRTX barely fell despite a steeper pullback in the broader market -- a potential sign of relative strength.
The narrow range also pushed Bollinger...
Financials have been in the doghouse since Silicon Valley Bank failed in March, but now there could be signs of improvement.
The first pattern on today’s chart of the SPDR Select Sector ETF is the falling trendline that began early last year. XLF’s rally through July battled against that resistance. It pulled back in August but has now pushed through that line...
September’s been a pretty quiet month so far, despite its reputation for volatility. However, prices might be gearing for a bigger move relatively soon.
The first pattern on today’s chart of the SP:SPX S&P 500 index is Wilder’s Relative Strength Index (RSI). The oscillator has been sitting little changed around the midpoint of 50 for the last week. It’s...
Consumer staples are the second worst-performing major sector this year. (They lag only Utilities, according to TradeStation data.) Today we’re considering a potentially bearish pattern in one of the big names in the space: Procter & Gamble.
PG briefly traded above $158 in April without staying there. The same thing happened again last month. The result could be...
Semiconductor stocks have surged this year, thanks in large part to NASDAQ:NVDA Nvidia. But they could be losing relative strength to software makers within the technology sector.
Today’s main chart focuses on the NASDAQ:SMH VanEck Semiconductor ETF, which closely tracks the NASDAQ:SOX Philadelphia Semiconductor Index. It recently slipped below the 50-day...
Meta Platforms pulled back along with other growth stocks in August. But now some traders may look for its uptrend to continue.
The first pattern on today’s chart is the 50-day simple moving average (SMA). The recent dip was META’s first pullback to this line all year.
Next is the series of higher lows since August 25. Prices have simultaneously pushed against...
Homebuilders were a surprise leader in the first half. But with interest rates staying high, bears could be moving into the neighborhood.
Today’s chart focuses on Home Depot. Similar patterns appear on related charts including NYSE:LEN Lennar, NYSE:PHM PulteGroup and NYSE:TOL Toll Brothers.
The first issue is potential bearish divergence. HD made a...
Tyson Foods has struggled with poor quarterly results. Now, after nearly four months of consolidation, traders may look for continued downside.
The first pattern on today’s chart is the trio of bearish gaps after the meat company missed estimates and/or issued weak guidance. That may indicate deteriorating fundamentals and sentiment.
Second, last month’s high...
Like many growth stocks, Roku pulled back sharply in 2022. But now after a year of consolidation, the streaming-video company may be trying to recover.
The first pattern on today’s chart is the bullish gap on July 28 after quarterly results beat estimates.
Second, ROKU pulled back to form a base around $76 after the rally. That was near the peaks of mid-June...
Schlumberger surged early last month. Now, after a period of consolidation, it may be ready to continue upward.
The first pattern on today’s chart is the high-volume rally July 7-11. (This was part of a broad move across the energy sector as crude oil came off its lows.) SLB broke its early-March peak around $56, followed by successful retests under that level on...
Tesla skidded lower after its last earnings report on July 19, but now the EV giant could be turning a corner.
The first pattern on today’s chart is the dive toward $212 on August 18. It was the lowest level in more than two months, but TSLA gapped back to the upside a day later. The result is a potential “abandoned baby” candlestick.
Second, the bounce occurred...
Energy is the only sector with a positive return so far in August. Today’s chart focuses on Exxon Mobil, the biggest and most liquid name in the group.
First consider the trendline along the highs of May 8 and July 3. XOM surged after breaking out and has now come down to hold the same line. Is old resistance becoming new support?
Second, last week’s lows...
Only six members of the S&P 500 hit new 52-week highs last Thursday. (It was the fewest since March 17, according to TradeStation data.) Let’s consider Arista Networks, one of that small handful of names.
The first pattern on today’s chart is the bullish gap on August 1 after quarterly results beat estimates. ANET not only held those gains as the broader market...
Netflix has pulled back after a sharp rally, and now some trend followers may see potential for further gains.
The first pattern on today’s chart is the steady decline since earnings on July 19. That slide could be morphing into a successful A-B-C correction pattern.
Next, the second low (C) occurred near $400. That’s not only a “nice round number” where buyers...
