Don't Ignore This Chart!

100 Hammers Hit the Pre-defined Scans Page

Chartists looking for specific candlestick reversal patterns should check out the predefined scans page, which is updated intraday and end-of-day. Thursday's end-of-day results show a surge in the number of hammers (from 42 to 100 for a +58 gain). This indicates that many stocks dipped after the open and then rallied to close near their open. Of note, Kona Grill (KONA) and Web.com Group (WWWW) made the scan.

Screen Shot 2014-03-28 at 12.40.12 PM
Click this image for a live table

Google and LinkedIn Try to Hammer Out Short-Term Bottoms

Google, LinkedIn and other momentum stocks fell sharply this month and became short-term oversold this week. Signs of a short-term low are emerging early Thursday as Google (GOOG) and LinkedIn (LNKD) trace out hammer patterns. Keep in mind that it is still early and these hammers are subject to change until the close. A hammer is a bullish candlestick pattern that forms when prices dip after the open and then recover to close near the open.

140327goog
Click this image for a live Chart

Yelp Traces out a Rare Three Black Crows Pattern

Yelp ($YELP) came across the Three Black Crows scan on Tuesday. It all started with a black candlestick three days ago (Friday). The stock then opened above the Friday's close on Monday and sold off to form another black candlestick. The stock opened above Monday's close on Tuesday and again sold off to form the third long black candlestick. This is a bearish reversal pattern that does not require confirmation.

140311yelp
Click this image for a live chart

Bullish Candlesticks Line up for a Reversal in XRT



After a plunge below 78 to start the week, the Retail SPDR (XRT) firmed with a harami on Monday-Tuesday and then formed a hammer on Wednesday. These are bullish candlestick reversal patterns that require confirmation, which came with a gap and surge to 80. Even though the short-term reversal is in, the overall trend is still down after the January breakdown and big decline. The 50% retracement marks the first resistance zone in the 82.5-83 area.

140207xrtditc
Click this image for a live chart

Edwards Follows through on Candlestick Reversal Pattern

Edwards Life Sciences (EW) has been underperforming the biotech group for over a year, but the stock showed signs of buying interest with a bullish engulfing on high volume and follow through surge on Wednesday. Also note that support in the 65 area extends back to May and the stock formed a higher low by remaining above its December low. Check the predefined scans page for more signals.

140206ew
Click this image for a live chart

LinkedIn Tests Key Moving Average with Bullish Candlestick Pattern



It has been a rough few months for LinkedIn as the stock fell from the 255 area in September to the 200 area in early December. The stock, however, is finding some support near the rising 200-day moving average with a big bullish engulfing. After a pullback in mid January, LinkedIn is again trying to hold this key moving average with a surge the last three days. The indicator window shows the MACD Histogram turning positive on Monday. Earnings are scheduled for February 6th.

140203lnkf
Click this image for a live chart

A Breakaway Gap and Key Break for JP Morgan



JP Morgan (JPM) is leading the finance sector lower on Thursday with a gap and support break. This gap should be considered a breakaway gap as long as it remains unfilled. The indicator window shows the MACD Histogram moving to its lowest level in over four months. This means the distance between MACD and its signal line is the most negative since late August.

140123jpm
Click this image for a live chart

A Rare Bearish Candlestick Pattern Takes Shape in Chipotle (video)



Momentum darling Chipotle (CMG) has come under selling pressure with eight filled candlesticks in a row. A filled, or black, candlestick forms when the close is below the open, which indicates selling pressure after each open. Should today's long filled candlestick remain, a rare three black crows pattern would take shape. As the name suggests, these patterns form with three long filled candlesticks. In addition, notice that the open for the last two candlesticks is above the prior close and CMG sold off after each strong open.

140123cmg
Click this image for a live chart

Steel ETF Forms Piercing Pattern at Key Level



The Steel ETF (SLX) is perking up after a pullback to support. First, notice how broken resistance in the 46.5-47 area turned into support and held in November and December. With the January test, the ETF formed a piercing pattern on Tuesday and confirmed this candlestick reversal with another gain on Wednesday. The indicator window shows the Stochastic Oscillator turning up from oversold levels.

140115slx
Click this image for a live chart

A Dark Cloud forms over Seagate

Seagate Technology (STX), which is a Nasdaq stock with a three letter symbol, opened strong and closed weak to make the dark cloud scan list. These are potentially bearish patterns that require confirmation. A move below 49.5 would break the three week trend line and produce a bull trap, which is a failed breakout.

131209stx

Click this image for a live chart

Screen Shot 2013-12-09 at 11.50.37 PM
Click this image to see the scan results

Under Armour Forms Bearish Candlestick Pattern



Under Armour (UA) is currently in a long-term uptrend, but the stock stalled over the last three months with a head-and-shoulders pattern taking shape. The right shoulder is under construction with a bearish engulfing marking the high. The September-November lows mark neckline support in the 75-76 area.

131119us
Click this image for a live chart

Dow SPDR Forms Massive Engulfing Pattern



There are bearish engulfing patterns and then there are BEARISH ENGULFING PATTERNS. With a strong open and weak close on Thursday, the Dow SPDR (DIA) formed the latter. This is the second bearish candlestick pattern in two weeks. A follow through break below the early November low would confirm this pattern and reverse the five week upswing. Chartists can also watch the MACD Histogram as a move into negative territory would signal a downturn in momentum.  

131108dia
Click this image for a live chart

Facebook Doubles Down with Two Candlestick Patterns in Four Days



Facebook (FB) came across the bullish engulfing scan twice in the last four days. The stock fell to support last week and then formed a big bullish engulfing pattern on high volume. After a pullback on Friday-Monday, the stock opened weak on Tuesday and closed strong to form another bullish engulfing.

131106fb
Click this image for a live chart

S&P 500 ETF Joins a Crowded Bearish Engulfing Scan

With a strong open and weak close, dozens of stocks and ETFs made the bearish engulfing scan on Wednesday. These patterns form when the current open is above the prior close and the current close is below the prior open. The result is a black candlestick that engulfs the body of the first. These are short-term bearish candlestick patterns that require confirmation with further weakness. On the SPY chart, I would mark first support near broken resistance in the 172-173 area.

131030spy
Click this image for a live chart

DITC Biotech SPDR Confirms Bearish Engulfing Pattern

A short-term breakdown is in the works for the Biotech SPDR. The ETF returned to broken support and this zone turned into resistance as a bearish engulfing formed on Friday. The ETF followed up this reversal pattern with a trend line break on high volume. This break signals a continuation of the early October plunge and targets a move to next support in the 112.5-115 area.

131021xbi
Click this image for a live chart


Netflix Hits New High, but Forms Bearish Reversal Pattern (video)



Netflix opened at a new on Monday, but selling pressure quickly took hold and drove prices below 203 by the close. This intraday reversal forged a bearish engulfing pattern just above first support. Follow through below last week's low would argue for a deeper correction towards the 260-270 area.

130924nflx
Click this image for a live chart

Gold Miners ETF Forms Big Bearish Engulfing

The Gold Miners ETF (GDX) came under intense selling pressure earlier this week with a bearish engulfing and short-term support break. These two down days occurred on high volume. Also notice that the ETF is hitting resistance from the highs extending back to late April.

130830gdx
Click this image for a live chart

High Volume Gap Provides Support for E*Trade on CandleVolume Chart

The chart below shows E*Trade (ETFC) with CandleVolume charts to accent volume. Upside volume has been strong in general and the stock gapped above 14 with the biggest volume since the mid March gap down. This gap zone around 14 has turned support as the stock firms just above. A break above last week’s high would signal a resumption of the uptrend.

130821etfc
 Click this image for a live chart

US Oil Fund Forms Bull Flag in Uptrend

After surging and breaking resistance in July, the US Oil Fund (USO) pulled back with a falling flag the last few weeks. USO made its first move with a surge over the last two days. A follow through breakout above flag resistance would signal a continuation higher. Chartists can also watch MACD for an upturn in momentum.

130812uso
Click this image for a live chart

Chuy's Holdings Forms Bearish Engulfing at Key Retracement

Chuy's Holdings came across the intraday bearish engulfing scan on Wednesday. Even though the trading day has just begun, notice that the stock broke down in July and retraced 62% with a bounce back to 40 in August. The gap and 62% retracement mark resistance as the stock reversed course in Wednesday.

130807chuy
Click this image for a live chart

Treasury Bond ETFs Forge Intraday Reversals

The 7-10 year T-Bond ETF (IEF) opened weak and closed strong on Tuesday to forge an outside reversal day or bullish engulfing pattern. This is potentially positive, but we have yet to see follow through with a break above first resistance at 105. Also notice that the Commodity Channel Index (CCI) remains below momentum resistance at zero. Watch these levels for a short-term breakout that would be bullish for Treasuries and possibly bearish for equities.

130612ief
Click this image for a live chart.

QQQ Follows Thru on High Volume Hammer

The Nasdaq 100 ETF (QQQ) fell below 72 on Thursday, but rallied to forge a strong close and form a hammer. Also notice that volume surged to its highest in over three months. QQQ followed through with a gap and move above 73, but has yet to break flag resistance just above 73.50.

130607qqq
Click this image for a live chart.

Finisar Makes the Gap Scan with a Surge Higher

Finisar (FNSR) has had a tough year so far, but the stock is showing signs of life after a bear trap in late May (failed support break) and gap breakout in early June. Also notice that RSI is challenging range resistance and a breakout at 60 would be bullish for momentum. FNSR was spoted in the gap up group on the intraday predefined scan page.

130606fnsr
Click this image for a live chart.

Target Fills Gap after Shooting Star

Target (TGT) surged to a new high above 72, but failed to hold above 72 as a shooting star candlestick formed on Tuesday. The stock went on to fill Tuesday’s gap with a long filled candlestick on Wednesday. This confirms the shooting star and resistance in the 71-72 area.

130605tgt
Click this image for a live chart.

Bank of America Forms Bearish Candlestick Pattern at Interesting Level

With a strong open and sharp move lower, Bank of America (BAC) is gracing the intraday candlestick scan with a dark cloud as we head into the close on Friday. Note that this bearish reversal pattern is taking shape near resistance from the prior highs. Also notice that a broadening pattern could be taking shape. The indicator window shows the Accumulation Distribution Line failing to make it back to the mid February high.

120308bac
Click this image for a live chart

Other StockCharts Blogs

Subscribe to this blog