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StockCharts Blogs - Don't Ignore This Chart! |
Oracle (ORCL) surged back above 28 this month, but stalled the last few weeks as resistance came into play. First, notice that broken support turns resistance around 28.50. Second, the stock retraced 50-61.80% of the prior decline. A pennant formed the last two weeks and traders should watch these boundaries for the next directional signal.
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A look at the StockCharts Technical Rank (SCTR) movers shows Quest Diagnostics with a big move (+37) on Tuesday. On the price chart, DGX broke ascending triangle resistance with a surge in volume today.
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Spot Unleaded Gasoline ($GASO) found support in the 2.45-2.50 area from September to December and then broke resistance with a surge the last three weeks. The breakout is holding, but $GASO stalled this week and fell rather sharply on Thursday. A move back below 2.62 would negate the breakout. Believe it or note, this breakout is positive for stocks because $GASO and the S&P 500 are positively correlated.
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Urban Outfitters (URBN) is showing signs of life with a move toward the upper trendline of a triangle consolidation. The stock is currently up three of the last five days, but volume is light. A breakout on surging volume would be bullish. Failure and a break below support at 27 would be bearish.
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Regions Financial (RF), which is part of the regional banking group, is showing strength with a break above the November-December highs on surging volume. Prior to today’s breakout, the stock consolidated with a seven day pennant. Watch support in the 4-4.20 area for signs of failure.
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With a surge in late December, the Dow Transports is once again challenging resistance from the October highs. Notice that the Average failed at this level in early December. The Dow Industrials is also hitting resistance near the October high. Breakouts in both would be bullish according to Dow Theory.
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After surging in October, the Energy SPDR (XLE) moved into a sideways pattern with a lower high and a higher low. In short, the noose is tightening as a triangle consolidation takes shape. Watch resistance from the early December high and support from the mid December low for the next directional signal.
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The Nasdaq 100 ETF (QQQ) is hitting resistance from the November trendline and a key retracement. Notice that the ETF turned back at the 62% retracement with Wednesday's decline. A lower high could be taking shape as buying pressure dries up below the early December high.
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The Dow Industrials SPDR (DIA) is challenging resistance from an inverse Head-and-Shoulders pattern. After surging in October, the ETF consolidated for two months to set up the pattern. The late November low formed the head and neckline resistance is set just above 122. Before getting too bullish, note that low volume during this week’s advance detracts from the pattern.
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There are two bearish patterns at work with Akamai (AKAM). First, a lower high formed in early December and a descending triangle is taking shape. A move below 26 would confirm this pattern. Second, a bear flag formed the prior five days and the stock is on the verge of breaking flag support with a sharp decline on Wednesday.
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