Technicians should not be surprised with the recent downward price ejection out of the August consolidation pattern, known as a ‘rising wedge.’ Not only did the pattern follow classic definitions and expectations, we were treated with a prior example of the pattern just a few short months ago. Let’s look at the Dow Jones index…
A reader asked me yesterday to look at a potential ascending triangle on the 3-year chart of copper and indeed that is the dominant structure of Copper prices and it’s definitely worth a second look. Let’s take a look at the compressed weekly chart of Copper prices (Symbol $COPPER in StockCharts.com): Ascending triangles are consolidation…
Financial stocks have been showing relative strength as of late during the recent market rally. I wanted to call attention to Prudential Financial Securities (PRU) to show a classic example of a Bull Flag measured move example worth nothing. Prudential Financial (PRU) Daily Chart: Price formed a positive momentum divergence on the July 15th lows…
Dell Inc (DELL) missed earnings last week and investors punished the stock by sending shares lower, breaking the daily uptrend and numerous levels of support. Let’s take a quick look at the charts to see what we can learn from these developments. Dell Daily: Prior to the earnings announcement plunge, price had completed a “Three…
There are two main ways I view broad sector performance and compare results to determine where we may be according to the Sector Rotation Model. Here, I show those two methods. First, I use the StockCharts.com AMEX Sector Performance page with a few modifications. It’s located on the StockCharts homepage under the PerfCharts tab on…
Wednesday offered some interesting trade set-ups and opportunities that I wanted to describe from an educational standpoint, as the day showed a clear example of a bull flag measured move and momentum divergence… I also discuss Fibonacci retracements for added depth of understanding. With that said, let’s look at the DIA (Dow Jones ETF) 5…
Let’s talk about volatility and intraday range. Generally, it’s best to select swing or day trading candidates that have stable patterns, clean ranges, respect for support and resistance (and moving averages), stability, and the like. What happens when you look back on a stock’s chart and see wildness and confusion? It might be best not…
If you’ve been frustrated by your trading results for any of the quarters this year, or for the year to date performance, you’re not alone. Many hedge funds, institutions, mutual funds, retail (at home) traders, and almost the whole spectrum experienced underperformance at least at some point since the market turned in October 2007, so…
I’ve you’ve been following gold prices lately, you’ve noticed the precipitous plunge from the 1,025 per ounce high made just earlier this year. Rather than getting ultra bearish at these levels, let’s consider the possibility that a bounce may occur, or at least that gold prices are at critical ‘make or break’ short term price…
In one of the most massive short-squeezes/bottom fishing price surges I’ve seen, Hansen Naturals (HANS) – famous for their energy drinks – surged 50% from new 2008 lows, which was preceded by a distinct positive momentum divergence. Let’s look closer. HANS Daily: According to the Motley Fool article, Hansen released news that their Monster Energy…