We cited the bullish potential in gold prices late last year. This played out as expected, but there hasn’t been any follow-through. Now some bearish patterns are taking hold.
This chart shows the downward trend line in the Market Vectors Gold Miners ETF. Notice how the latest rally tried and failed to push above it.
Next is the rising channel in place since...
If any stock defined the age of Covid, it would be Zoom Video Communications. Now the videoconferencing disrupter could be showing that sentiment has truly moved on.
ZM has steadily trended lower since peaking near $590 on October 19. It fell on the November 9 vaccine news, and again December 1 -- despite a very strong quarterly report the night before.
ZM is...
McDonald’s has trended lower since late October, but now may be attempting a breakout.
This chart shows the declining trendline in place since October 23 and the 50-day simple moving average (SMA). MCD pushed above both -- for the first time since the recent slide began.
Next, the recent low on January 4 was higher than the December low. This has created a...
Mastercard has gone nowhere for a year, but now it could be ready to start moving.
Notice how prices jumped on November 9 and moved sideways for the next six weeks. MA accomplished a few things technically during that time.
First, the credit-card giant managed to consolidate above an important zone around $330. That was the bottom of its bearish gap when the...
Monday’s hard selloff was a jarring start to the New Year, but it didn’t do a lot of technical damage.
Most importantly, the index held two levels.
First, its low of 3663 matched a rising trendline in place since mid-November. (It began with the first pullback after the breakout to new highs.)
Second, SPX managed to close slightly above 3700. While this...
Homebuilders were one of the strongest industries early in the pandemic as city dwellers headed to the suburbs. While the social trend has continued, bullishness has faded in the stocks.
This chart shows the broken trend line in the iShares US Home Construction Index. It apparently tried to form a bullish ascending triangle against resistance at $58.50 but never...
The SPDR Energy ETF had a historic selloff last year, but now it’s holding some key levels as an important chart pattern appears.
First, XLE spent the last two weeks of 2020 holding roughly $37.90. That was near the low from March 2009. Looking back even further, it’s also near a high from November 2004. That’s when crude oil began its major ramp toward $100.
...
Gold had a big rally in June and July. The yellow metal has consolidated since, but now may be attempting a breakout.
This chart shows the downward-sloping trend line on gold that began on August 7. Several patterns may indicate prices are ready to start moving.
First, notice how XAUUSD has held close to the line, unlike its test and breakdown on November 6 and...
Alphabet was the only megacap Nasdaq member to break out on its last set of quarterly numbers. Now it’s pulled back to some interesting levels.
First, GOOGL tested its 50-day simple moving average (SMA) on Monday and held that line.
Second, that SMA is near the September 2 peak of $1726.10. It bounced around that same level twice last month, which could mean old...
Apple’s price chart continues to show improvement amid reports of strong demand for the iPhone 12.
First, the tech giant started December by breaking above $120 and holding its ground on December 10 and 11. It then proceeded to break $125 and hold its ground again yesterday.
This second level is important because it was key resistance on October 12 and 13.
MACD...
Walmart has fallen by the wayside lately as investors focused on reopening stocks. But now it could be poised for a rebound as the coronavirus pandemic worsens.
The big box retailer has a trendline starting at the March lows, which was tested in early July and late October. It’s now returned to consolidate at that line.
WMT’s 50-day simple moving average (SMA)...
General Motors has been in the fast lane since the fourth quarter began. It’s now having its steepest pullback of the rally, offering momentum investors a potential opportunity.
The first feature on GM’s chart is yesterday’s hammer candlestick. Sellers tried to push the shares below $41 but weren’t able to keep it there.
Second, that $41 level is potentially...
Bitcoin has moved sideways for most of December as it consolidated its October and November gains. But now the chart could point to further upside.
The main pattern at work is the bullish ascending triangle that began with the Thanksgiving pullback. BTCUSD proceeded to make a higher low one week ago. It then successfully tested that low with a false breakdown on...
Las Vegas Sands jumped on November 9 when news of Pfizer’s vaccine hit. It’s consolidated since, and is now showing some potential signs of continuing higher.
The first pattern on LVS is its gap above the previous high around $56. The shares have held their ground above those old highs, suggesting it’s found support above old resistance.
Next is the higher low...
Catalent is an interesting company because it managed to get added to the S&P 500 before Tesla in early September. It also traces its history back to the creation of soft-gel pills in the early 1930s.
CTLT has trended higher most of the year, fueled by strong results. The stock rallied after its last earnings report on November 3, and has now retraced most of...
For over a month, the stock market has priced in a post-Covid reopening. Now there could be signs of that trend exhausting itself.
First and foremost is the recent double-bottom on the iShares 20+ Year Bond ETF. We cited downside in this instrument twice as it hit the top of its channel. But it made a slightly higher low/double following the last drop. That could...
One of the most interesting things about the rally since early November is the broad participation by smaller companies, and the near-total abandonment of megacaps. For example, the S&P 500 made new 52-week highs in five of December’s first eight sessions. However, only two of the 10 biggest U.S. companies by market cap accomplished the same feat: Alphabet and...
Stocks began this week bordering on complacency, according to various sentiment gauges. Yesterday we got the first potential warning of a pullback as the S&P 500 hit a new intraday high and quickly sold off. That resulted in a bearish outside day, which can be a reversal pattern.
The VIX had just the opposite – a bullish outside day. It also occurred around the...
