2022 has begun with another sharp rotation from growth to value stocks. The SPDR Technology ETF had its biggest weekly drop in over a year, while the SPDR Energy ETF had its biggest gain in even longer.
Financials also jumped:
Price action in the two value sectors (XLE and XLF) seems to resemble XLK another moment 5-1/2 years ago. The chart below...
The S&P 500 made new highs above 4800 early this year, but now the move may be looking like a false breakout.
Notice how the rally between December 21 and 27 happened against a backdrop of waning volume. This isn’t a surprise given the Christmas holiday. But then when volume did resume last week, it occurred as price dropped.
Several potential reversal patterns...
Home Depot has been ripping higher as Americans spend on their homes. But now the chart may be pointing to sideways movement.
First, consider the large bearish engulfing day on January 3. It followed a similar candle on December 8, which may indicate sellers are active above $410.
Next, the two peaks have created a downward-sloping channel. The bottom of the...
Technology stocks have struggled this week as interest rates rise. However, the selling has mostly targeted classic “growth stocks” like high-multiple software makers. Some of the more cyclical hardware/equipment names have fared better -- including Applied Materials.
AMAT more than doubled between November 2020 and April 2021. It spent the next half a year...
Believe it or not, Amazon.com is little changed since July 2020. Now it faces an uphill struggle as a new year begins.
The first pattern jumping off the chart is the downward-sloping trendline that began shortly before Thanksgiving. AMZN steadily trending lower as the broader market hit new highs suggests investors have shifted away from the e-commerce giant in...
Nokia has gone nowhere for more than a decade, but now the Finnish networking stock may be finding new life.
The first pattern on today’s chart is the symmetrical triangle that formed in August and September. NOK broke out of this range earlier this month. It proceeded to bounce above the triangle last week, turning old resistance into new support.
Second, the...
United Parcel Service started delivering new highs in the summer of 2020. Now the chart could be interesting again after an eight-month pause.
First, notice the bullish gap after the last quarterly report on October 26. Earnings, revenue and guidance all surprised to the upside as CEO Carol Tome (installed last year) continues to execute her turnaround plan...
Swiss sneaker company On Holding went public in mid-September for $24. It peaked near $56 in mid-November following a strong quarterly result and has now pulled back.
The first pattern on today’s chart is the 50-day simple moving average (SMA). ONON broke under that line in on December 13 as the retail sector crashed. But it’s chopped sideways since and...
Tesla has been on anything but autopilot since peaking above $1,240 in early November. The EV giant first made a lower high near $1,200, followed by a lower low under $900 yesterday
Taking a step back, the price action is starting to resemble a downward channel. This could be interesting because it could potentially turn into a bullish flag. However it will take...
Price action in the market has grown more cautious, especially toward technology stocks.
The first big pattern occurred on Monday, when the SPDR Technology ETF jumped to a new all-time high above $175. But it was negative within an hour and closed the session under Friday’s low – a big bearish engulfing candle.
Similar patterns appeared on November 22 and...
Johnson & Johnson is often a dull stock, but it had some exciting price action yesterday.
The health care giant dropped 1 percent in the initial seconds of trading, undercutting Friday’s low. Buyers immediately came out of the woodwork, driving the stock to its highest close in over three months. The result was a large bullish outside candle.
Next, the surge...
Bank of America attempted a breakout in October, but some newer patterns suggest a potential change of direction.
Notice the series of lower highs since December 1 as BAC tries to hold roughly $43.60. That’s a potential bearish triangle. Interestingly, the support line is near the June high of $43.49.
Second, most of the candlesticks recently have been solid,...
Visa has had a rough quarter as fundamentals weaken in the increasingly crowded payments space. Now it’s rebounded toward areas where sellers may return.
The first pattern on today’s chart is the declining 50-day simple moving average (SMA). The credit card giant hasn’t quiet reclaimed this line but it’s getting close. It could be potential resistance.
Next is...
The Russell 2000 small cap ETF attempted a breakout in early November. But momentum soon faded and IWM led the broader market to the downside. Now that it’s fallen, can it get back up again?
The first pattern on today’s chart is the 200-day simple moving average (SMA). Prices rallied from this line in October. This week, they stalled at the same area.
Next, you...
Roblox struggled between June and November, and now it may be coming to life.
The first pattern on today’s chart is the high-volume gap on November 9. Over 95 million shares traded on that surge, more than the previous 13 sessions combined. A record-setting day like that represents a potential change of character in the stock, with a whole new set of investors...
Footwear stock Crocs has been in a steady uptrend since the market bottomed in March 2020. Now it’s pulled back and may be interesting to swing traders.
The first pattern on today’s chart is the 50-day simple moving average (SMA). CROX tested it on Friday and Monday, closing above it both times.
Next, the current area of support corresponds to the September peak...
Enphase Energy made a big move between early October and late November, ripping from $145 to a new record high above $280. Now after a healthy pullback, traders may start to notice.
The first pattern on today’s chart is the 50-day simple moving average (SMA), which ENPH tested yesterday for the first time since breaking out.
Next, the low was near the stock’s...
Google renamed itself Alphabet in 2015. Now it may be struggling with the 13th letter in that famous text string.
Notice how GOOGL nosed above $3,000 on November 5 and 8 but failed to hold. Almost exactly the same thing took place on November 18 and 19. Both attempts left behind solid candlesticks with long tails on top – yet not a single close above the...
