Material stocks have come under pressure as the Federal Reserve gets hawkish. Alcoa has held up better than many peers, but for how long?
Notice the candles with long upper tails or solid bodies as the aluminum company chopped above $60. Those indicate selling pressure around that price.
Looking further back, notice how that level matches a high from April 2018....
Tesla continues to bleed lower following its big fourth-quarter breakout. Now it may be crumbling through support.
As we noted at the time , $900 was an important level on December 21. It had been a high from early 2021, and TSLA bounced sharply after turning the old resistance into new support.
But what followed that rally? Prices shot back toward the November...
The iShares MSCI Brazil ETF has skidded lower since the summer, but now it may be reversing higher.
The first pattern on today’s chart is the bearish trendline running along the highs of June, July and December. EWZ broke above that line last week and has remained there since – even as the S&P 500 crashed to a seven-month low.
Next consider the 10- and 50-day...
Early this year, we covered the false breakout in the S&P 500. Now the opposite may have taken place: a false breakdown.
Notice how prices dipped yesterday to their lowest level since mid-June. They blitzed through support from early October and July, before reversing to close slightly positive. That kind of testing below support, followed by a quick rebound...
The rise of inflation has investors quietly returning to many commodity-related stocks that were popular 2003-2007. One of them is Bunge.
Earlier this month, the soybean processor touched its highest level in over 13 years. It pulled back but is trying to stabilize around the same $92 area where it peaked last May. Is old resistance new support?
BG is also near...
Broadcom steadily advanced since the beginning of the fourth quarter, and now it’s had a dramatic pullback as sellers shred the Nasdaq.
The first pattern on today’s chart is the level around $544. It was a low on November 26 and again on December 2. Traders may look for it to provide support again.
Next, AVGO is oversold by at least two measures. Stochastics...
Take-Two Interactive has rebounded after a sharp drop. Now the sellers may return.
TTWO halted its bounce around $164. That zone offered support in March and May, and resistance in August, then support again in December. Given its relevance in the last year, could it mark a top for the latest move?
Second, the 50-day simple moving average (SMA) just slipped...
Ulta Beauty’s chart might look like a tangled mess lately. But a longer-term view suggests it may be sitting pretty.
First, consider the breakout in August as the beauty-products company jumped to new all-time highs. It was extended at the time, resulting in a sideways consolidation for the next five months.
But what’s the bottom of its range during that time?...
Silver has been dead money since the summer as the U.S. dollar ripped higher. But now it’s attempting a breakout – despite next week’s looming Federal Reserve meeting.
Notice how the iShares Silver Trust made a higher low on January 6 versus its nadir the previous month.
Next, consider the level above which it made the higher low: $19.80. That price marked a...
All good things must come to an end. Is that finally true for the Nasdaq-100 after nearly two years of steady gains?
The main pattern jumping off this chart is the double-top around 16,600. A large bearish engulfing candle appeared there on November 22. NDX then pulled back, bounced and proceeded to make a slightly lower high in same area immediately after...
Nio had a massive run during the worst of the pandemic, followed by a year of pullbacks. Now the electric-car maker could be stabilizing at a key level.
First consider the price area near $28. NIO consolidated around that level in October 2020 before proceeding to more than double. Now that zone is providing support.
Second, consider the high-volume surge on...
The U.S. dollar index has rallied since the summer, but now it’s showing signs of fatigue.
First, this weekly chart had a bearish inside candle in late December. That’s a potential reversal pattern.
Next you have the recent double tops around 96.9. These are slightly below the 97.1 area where DXY bounced in late 2019. Is old support new resistance?
All three...
The SPDR Health Care ETF Health care has pulled back after a sharp rally in December. Some interesting patterns are also appearing on the chart.
First, XLV stands out because it was the first major sector fund to go positive yesterday. Its 1 percent gain also made it the top performer in the session.
Second, the bounce followed a drop to a one-month low and took...
2022 has begun with another sharp rotation from growth to value stocks. The SPDR Technology ETF had its biggest weekly drop in over a year, while the SPDR Energy ETF had its biggest gain in even longer.
Financials also jumped:
Price action in the two value sectors (XLE and XLF) seems to resemble XLK another moment 5-1/2 years ago. The chart below...
The S&P 500 made new highs above 4800 early this year, but now the move may be looking like a false breakout.
Notice how the rally between December 21 and 27 happened against a backdrop of waning volume. This isn’t a surprise given the Christmas holiday. But then when volume did resume last week, it occurred as price dropped.
Several potential reversal patterns...
Home Depot has been ripping higher as Americans spend on their homes. But now the chart may be pointing to sideways movement.
First, consider the large bearish engulfing day on January 3. It followed a similar candle on December 8, which may indicate sellers are active above $410.
Next, the two peaks have created a downward-sloping channel. The bottom of the...
Technology stocks have struggled this week as interest rates rise. However, the selling has mostly targeted classic “growth stocks” like high-multiple software makers. Some of the more cyclical hardware/equipment names have fared better -- including Applied Materials.
AMAT more than doubled between November 2020 and April 2021. It spent the next half a year...
Believe it or not, Amazon.com is little changed since July 2020. Now it faces an uphill struggle as a new year begins.
The first pattern jumping off the chart is the downward-sloping trendline that began shortly before Thanksgiving. AMZN steadily trending lower as the broader market hit new highs suggests investors have shifted away from the e-commerce giant in...
