Author Archives: Rob Moreno

IBM Rare Tri-Star Reversal Pattern

If IBM closes near its current level, the price action on the daily chart will form a rare tri-star candle reversal pattern. On Monday, I noted the stock was breaking out of what looked like a bullish flag pattern, and measured a little less optimistically it reached the target price on an intraday basis. Again, a third doji candle is required to form the tri-star and here is a detailed explanation of the three candle formation.

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Social Media and Biotech at their 50 DMA’s

I mentioned on Tuesday that the Global X Social Media Index Fund (SOCL) and the Biotech iShares (IBB) did not like the mention they received in the Chair Yellen testimony that day, but that both funds were approaching areas of minor support. A snap back rally did not seem likely and despite today’s strong moves off their 50 day moving averages, I still think a period of consolidation around current levels is required and would be healthy for the longer term future of the sectors.

47. SOCL IBB charts

Starbucks Breakdown

Starbucks (SBUX) was up over 13% from its May low to its July high. The rally formed a clear uptrend line on the daily chart and today that support was broken decisively with the stock price closing near its low. First downside target is the gap in the $76.00 area, just above the merge of the 50 and 200 day moving averages.

46. sbux chart

American Express Channel Breakdown?

I highlighted the chart of American Express (AXP) at the beginning of the week. The high wick rejections at the top of the channel were warnings signs and now the stock is breaking below channel support. It has been a volatile day, so waiting for a daily close in lower candle range for confirmation.

46. AXPchart

Hain Celestrial Tests Large Symmetrical Triangle Support

Shares of Hain Celestial Group (HAIN) have spent the first half of this year consolidating in a large symmetrical triangle pattern, and today the stock is once again testing the support line. A confirmed breakdown from the pattern projects considerable percentage downside.

46. HAIN chart

McClellan Oscillator Divergence

The charts are rife with divergences and here are a few more. The McClellan Oscillator, a MacD like measurement of net advancing stocks, has been moving lower as the S&P 500 has been moving higher, also declining is the number of stocks in that index above their 50 day moving average.

45. RVT SPX McC and 50dma chart