Chinese technology stocks have suffered a violent correction in the last month as Beijing tightens regulations on the sector. As a result, some of most dynamic growth names in recent years are now potential values.
Alibaba in particular stands out because of two patterns on its weekly chart.
First, the hammer candlestick that was just completed.
Second is...
Next week could bring some big Ethereum news with fee burning expected to go live on Wednesday. Price action is also holding tight uptrends on the hourly and daily charts.
First, notice the rising 50- and 100-hour simple moving averages (SMAs). ETHUSD has bounced at one or the other at various times since its rebound started on July 21.
Next, prices on the daily...
The S&P 500 has risen for six straight months. Is it lining up for a pullback?
This chart shows a rising wedge that’s taken shape this month. Unlike the earlier ascending channel , this pattern is potentially bearish because the new highs aren’t keeping up with the higher lows. That suggests buyers are less willing to push the index into new...
Energy is the top performing sector this year, despite two months of weakness. It now appears hugely oversold in comparison with crude oil prices.
The chart below shows the ratio of the SPDR Energy ETF against crude oil CFDs. Notice how the current ratio is among the lowest of all time.
The next chart shows USOIL with daily candles. It had a quick dive under...
Once upon a time, Tesla was a fast-moving growth stock. But those days could be in the rearview mirror.
This chart highlights Bollinger Band Width and Historical Volatility on the electric car maker.
Notice how Band Width is under 8 percent – its tightest since February 2018.
Historical volatility has dipped back to May 2020 levels as TSLA pushed against...
Semiconductors have been a key pillar of the S&P 500’s advance since 2016, and now they may be flashing a warning signal for the overall market.
This chart of the Philadelphia Semiconductor Index shows how gains have been slowing all year. Prices have squeezed into an increasingly narrow range, with the 50-day simple moving average (SMA) recently dipping within...
This week’s Federal Reserve meeting could ignite some activity in the currency market. The Australian Dollar, in particular, has some interesting patterns.
First, stochastics on AUDUSD’s weekly chart have dipped to their most oversold level since February 2020. Next, consider how prices have returned to the 0.73 area where they peaked Aug. 31-Sept. 1. This is...
Copper had a dramatic run coming out of the pandemic, more than doubling between March 2020 and May 2021. Now, after a period of consolidation, it may be ready for more upside.
First consider the ascending triangle that’s formed with a top around $4.35. It’s currently attempting its highest close in six weeks, which could result in a breakout. Traders may now...
The U.S. Dollar Index has been drifting higher for about two months, but now the move may have run its course.
DXY peaked at 93.44 in March. It got within 0.25 of that level on Wednesday but reversed and dipped below Tuesday’s low. In other words, we have a bearish outside candle near resistance. The previous candle also had something of a shooting star. All of...
Electric cars have been one of the most explosive industry groups in recent memory, and now traders may have another name to focus on: smart-vehicle maker XPeng.
Several patterns stand out on the Guangzhou-based company’s chart. First, prices recently tested and held the $37.50 area. That was support in late December and resistance in March and April. It’s also...
Amazon.com came to life in the past month. Now it’s pulled back, giving an opportunity to potential buyers.
The main pattern on this chart is the breakout from the basing pattern that formed between September and June. This move to new highs suggested bulls were returning to the e-commerce giant after three quarters of consolidation.
Second, notice how prices...
Stocks have been rallying for a while, and there could be signs of things getting long in the tooth.
The first potentially bearish pattern occurred on July 14, when the index inched 1.3 points above the earlier high. It then made a slightly lower low, resulting in a spinning top / outside day. An early attempted rally fell flat two sessions later (on Friday),...
The Market Vectors Gold Miners ETF has one of the most interesting charts in the market.
Notice the steady decline from last summer, followed by a bump in the spring. It then gave back almost all those gains but still managed to drag the 50-day simple moving average (SMA) above the 200-day SMA.
That results in a strange situation with both SMAs falling – yet...
The S&P 500 keeps hitting new highs, but the Russell 2000 small cap index hasn’t been so fortunate.
RUT has gone almost four months without a new record level. In contrast, the Dow Jones Industrial Average and Transports haven’t hit a new high in over two months. The S&P 500 and Nasdaq-100 hit new highs this week.
A few bearish patterns stand out on the small...
Campbell Soup has struggled for years. Now it may be at risk of breaking a key support line.
Notice the $45 level on this chart. CPB clung to this price zone in late 2017 before moving lower in 2018 and 2019. It rebounded as the pandemic drove demand for packaged foods, but even then remained well below the previous highs from mid-2016.
Next, notice how the...
A lot of recent IPOs have struggled, but strong price action has stood out in one particular firm: Global-e Online.
GLBE went public for $25 on May 11. That doesn’t provide much price history to analyze, but some patterns stand out.
First, the stock ripped to new highs in late June, then pulled back to hold its rising 21-day exponential moving average...
Several chip stocks are squeezing into tight ranges with breakout potential.
Notice how Broadcom briefly knifed under its 50-day simple moving average (SMA) on July 2. (It followed an antitrust complaint.) The bears quickly surrendered, and a week later AVGO had its highest close since mid-April. So you have a false breakdown and a strong bounce outside of the...
This week was cut short by Independence Day. That makes it a good time to view Micron Technology, which seems to have the spirit of 76.
The memory-chip maker had a false breakdown below that level on January 27. It quickly rebounded and returned to test $76 three times since mid-May. Interestingly, the current bounce is happening near the rising 200-day simple...
