StockCharts Blogs - Don't Ignore This Chart!

Electronic Arts Bounces off Support with Bullish Engulfing

Electronic Art (ERTS) declined to the August low in mid January and then firmed the last two weeks. A bullish engulfing formed on Friday as the stock opened weak and closed strong. ERTS follow up on this pattern with a breakout on above average volume. The trend since November remains down and the November trendline marks the next hurdle.


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Regional Bank SPDR Forms Big Bearish Engulfing

With stocks opening strong and then moving sharply lower, the intraday bearish engulfing scan is filling up quite quickly. Of note, the Regional Bank SPDR (KRE) has a bearish engulfing in play on Thursday afternoon. In fact, notice how the ETF pretty much engulfed the last 11 days of trading and broke below its mid January low.


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QQQ Forms Long Legged Doji

QQQ opened flat, surged, dipped and then recovered to close basically unchanged on the day. As a result, the ETF formed a long legged doji, which shows indecision on the day. Overall, the trend remains up as the ETF holds above the December trendline. A break below this trendline would be the first sign of weakness.


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Oil Equipment and Services Stocks Moving Higher

A look through the CandleGlance groups shows stocks in the oil equipment and services group moving higher on Tuesday. The image below shows four of the six stocks along with the DJ Oil Equipment & Services Index ($DJUSOI). Most of the stocks are up more than 2% with giant Schlumberger up over 3%.


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Apollo Bucks the Market with Bearish Engulfing

Apollo (APOL) opened strong and moved lower to trace out a bearish engulfing during the day on Tuesday. It is interesting that APOL is not moving higher with the market and that this bearish candlestick pattern formed at resistance. Follow through below Tuesday’s low would confirm the pattern.


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Broadcom Forms Bullish Engulfing on Good Volume

Broadcom (BRCM) came across the bullish engulfing scan on Wednesday. After becoming oversold with a sharp decline in November, the stock firmed the last two weeks and formed a bullish engulfing on Wednesday. This white candlestick completely engulfed the prior black candlestick. Volume was also above average. Follow through above the early December high would confirm the pattern.


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Watson Pharma Forms Monster Bearish Engulfing Patterm

Even though the market moved sharply higher on Wednesday, Watson Pharma could not hold its early gain and closed weak. Wednesday’s black/filled candlestick completely engulfed the prior white/hollow candlestick to form a bearish engulfing. Also notice that volume surged. You can read more on candlesticks in our ChartSchool.

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All 30 Dow Stocks Moving Lower

The CandleGlance chart for the 30 Dow stocks provides snapshot of the current day’s action. As of 12:30ET on Monday, all 30 components were down with most down over 2%. This is clearly a broad-based decline that is affecting all sectors. The screenshot below shows the four of the thirty stocks.


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A Hanging Man and a Harami for XLK

The Technology SPDR (XLK) is hitting resistance from the late October high with a Hanging Man last week and a Harami this week. Both candlesticks are bearish reversal patterns. The Hanging Man was confirmed with a gap down and long black candlestick, but the ETF quickly bounced back above 26. The current Harami shows more indecision at resistance. A move lower from here would confirm this short-term reversal pattern. Medium-term support remains in the 25 area.


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Indecision Creeps into the Steel ETF

The Steel ETF (SLX) surged above its mid October high with a big move on Monday, but turned indecisive on Tuesday and Wednesday. Notice how Tuesday’s candlestick was completely within the range of Monday’s. The pattern here is a Harami. This indecision extended as Wednesday’s range was again contained within Monday’s range. Consider it a double Harami. This is currently indecision within an uptrend. Watch support at 48 a change of mind.


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