On bearish days like we’ve had lately, it can be useful to look for stocks lurking near highs because they often break out when calm returns. DraftKings seems to fit that bill.
First, consider how the sports-betting stock formed a large bullish ascending triangle between early October and late February. Notice how it began the current month with a breakout...
Industrials have outperformed this year as investors look for the economy to rebound. Ingersoll Rand is a member of that group with some interesting chart patterns.
First, notice how IR surged to a new all-time high last week. It’s now pulled back to hold its earlier peak around $47.50 and form tight pennant. Traders may watch the 8-day exponential moving average...
Software companies have lagged this year as investors focus on cyclicals like energy and financials. But one unexpected name is breaking out: Oracle.
As covered previously, strong earnings lifted ORCL to new highs in December. It then pulled back to old resistance and bounced. This week, its shares are closing above their previous all-time highs.
Two technical...
Nvidia has gone nowhere since the summer, but now the chart may be lining up for another push to the upside.
The first pattern is the series of higher lows beginning in early January, plus a new all-time high in February.
Next, the most recent low of around $528 is almost exactly the middle of its four-month range. After consolidation on either side of that...
Uber Technologies quietly hit a new all-time high on February 11. Now it's pulled back and may be offering some opportunities for the bulls to hail a ride.
First, notice the trend line starting at the low of November 4, as stocks began their election-week rally. UBER jumped two sessions later after announcing results. It continued higher until late January, when...
Microsoft was one of the big winners last earnings season, beating estimates across the board and raising guidance. Now it’s pulled back to hold some key levels.
First, MSFT made a low yesterday slightly below its 50-day simple moving average (SMA). However it quickly rebounded to close above it.
Second, the current price zone is near the previous peaks of...
Two weeks ago, we highlighted some potential topping patterns on the S&P 500. It’s played out as expected, and now attention turns to the price channel highlighted in that idea .
Notice how prices ranged from the bottom to the top of the channel since November, including the middle of this month. But something changed this week because SPX didn’t return to the...
Homebuilders have struggled lately as interest rates rose, but the longer-term prospects remain favorable. Today’s chart considers the pullback in DR Horton, the biggest name in the space.
DHI hit a new all-time high of $84.41 on February 11 and pulled back. It’s now bouncing, which may create opportunities for buyers.
Notice the high basing pattern between...
Cisco Systems has gone nowhere for three years, but now the tech stock may be showing signs of life.
First, notice the pullback from new highs in early February.
Second, notice where CSCO broke out and is trying to stabilize. The current $45.50 level was resistance in December in January. Prices also chopped on either side of it between August 2019 and...
Recent weeks have seen a rotation away from Big Tech in favor of energy and financials. Apple hasn't been immune from the process, as this chart shows.
First, notice how AAPL made a double top around $138 in early September and late December. Those peaks were suspect because they occurred during holidays. They were also near the opens, followed by solid red...
Tesla is probably the most prominent stock in the last 12-18 months, surging about 2,000 percent from its peak to trough. But now it may be at risk as sentiment pivots from "new economy" stocks to "old economy" stocks.
This chart compares TSLA’s relative strength to the SPDR Consumer Discretionary ETF. (TSLA is now the #2 holding in the sector behind...
Zoom Video Communications has staggered since last year’s massive rally. Now it’s making a lower high and may be at risk of further downside.
Notice how ZM attempted to rebound above $450 this week but was quickly rejected. That’s important because it matches the high-volume bearish gap from November 9 – the same day positive vaccine news changed the narrative on...
American Tower is the largest owner of wireless towers, and the largest member of the real-estate sector.
It’s been in a long-term uptrend thanks to the spread of wireless communications, having doubled between early 2017 and early 2019. It hit new all-time highs last summer, pulled back for half a year and now may be showing signs of a turn.
The first important...
It’s been a long two years for Boeing, but now the chart may be signaling a turn.
The aircraft maker began its descent in March 2019, when fatal crashes forced the grounding of its workhorse 737 Max plane. BA continued facing headlines that year, followed by a nosedive when the pandemic hit.
The stock remains well below its peaks and is still one of the...
The SPDR Financial ETF quietly did something historic last week: It closed at the highest price ever.
This is a big deal because XLF has been trapped at resistance running back to 2007 (before the subprime crisis). It was trying to break the old highs around $31 exactly a year ago, then lost 44 percent of its value when the pandemic hit.
XLF jumped early this...
Consumer staples have lagged this year as investors look past the stay-at-home trend. The biggest stock in the sector, Procter & Gamble, is forming a bearish triangle pattern.
The $128 level is important because it was resistance in February 2020 – immediately before the pandemic slammed markets. PG has been holding the level for more than two weeks while making...
The S&P 500 has steadily trended higher since November. However some chart patterns suggest it may be topping out – even if there isn’t significant downside risk.
First, a parallel price channel has become increasingly visible, especially after the most recent surge. Prices are currently at the top of the channel.
Second, the last three sessions have featured a...
Advanced Micro Devices has been consolidating after a big surge in July and August. Now the chip stock may be lining up for another move.
The first chart pattern is the descending trend line that began on January 11. It was resistance a week later, but yesterday AMD closed above it for the first time.
Next, AMD has spent the last two weeks building support...
