March 08, 2013 at 3:23 PM | written by Arthur Hill
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.
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March 06, 2013 at 4:20 PM | written by Arthur Hill
The Russell 2000 ETF (IWM) is up seven days straight and is now trading near potential resistance from the February high. Notice that an indecisive doji formed on Wednesday. A doji and surge above 90 started this seven day rally. A doji and move below 90 would reverse this seven day upswing.
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March 04, 2013 at 1:36 PM | written by Arthur Hill
The Guggenheim Airline ETF (FAA) continues to lead the transports with another big move. Note that Delta (DAL) and United Continental Broke consolidations today. AMR has a falling wedge working and could be next.
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February 20, 2013 at 2:50 PM | written by Arthur Hill
OIH surged to a new high with a long white candlestick last week, but suddenly stalled as the next three candlesticks formed inside this long candlestick. This is basically an extended harami pattern, which is potentially bearish. Also notice that OIH is up over 20% since mid November and a retracement (correction) could be in order.
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February 11, 2013 at 1:57 PM | written by Arthur Hill
There was an uptick in the number of bearish candlestick reversals on Monday afternoon. As the screen shot below shows, there were 67 bearish engulfing patterns as of 1:51PM ET. There were also 13 dark cloud patterns and over 100 harami, which are like inside days. Chartists can click on the number to see a list of stocks with these patterns.
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January 30, 2013 at 12:11 PM | written by Arthur Hill
The bigger trends are clearly up for the Retail SPDR (XRT) as the ETF broke resistance with a big surge in January. However, XRT is short-term overbought after a big move and bearish candlesticks are taking shape. A harami-cross formed on Friday-Monday and a hanging man formed on Tuesday. A break below 66 would confirm this pattern and argue for a correction.
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January 03, 2013 at 6:02 AM | written by Arthur Hill
Not all stocks participated in Wednesday’s big advance. Lululemon (LULU) started strong,
but quickly succumbed to selling pressure and closed sharply lower. With a strong open
and weak close, a bearish engulfing pattern formed at resistance. Also notice that MACD
moved below its signal line last week.
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December 20, 2012 at 11:51 AM | written by Arthur Hill
Electronic Arts (EA) came under strong selling pressure the last three days with consecutive long black candlesticks. As this chart now stands (11:48 ET), a bearish three black crows pattern is taking shape. The stock is short-term oversold already, but the trend line and support break are medium-term bearish.
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November 09, 2012 at 12:13 PM | written by Arthur Hill
The
intraday bullish engulfing scan was quite full around 12PM ET with over 200 stocks making the cut. Among them, Amgen (AMGN) formed a bullish engulfing near the mid October low and 38.2% retracement. The channel is still falling here with the upper trend line marking resistance at 87.
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November 05, 2012 at 1:45 PM | written by Arthur Hill
Amazon.com surged with a long white candlestick last week and then stalled the next four days. Notice that these four candlesticks are all within the range of the long white candlestick. These inside days reflect a consolidation. Watch for a range break to trigger the next directional signal.
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