The DJIA held above the 20,000 level in Friday’s flat session and the S&P 500 didn’t form an eveningstar pattern. There was some speculation among (bearish) traders that an eveningstar was under construction on the S&P 500 daily chart, with Thursday’s narrow range doji candle forming after a larger white candle, and Friday’s weak open.… Read More »
The correlation between Dunkin’ Brands (DNKN) and Starbucks (SBUX) has been relatively high in the past and while that relationship has shifted over the last several weeks, it may be ready to realign. The disappointing Starbucks earnings report after Thursday’s close comes as Dunkin’ is testing resistance at its 50 day moving average and after… Read More »
DOW 20,000 is more than just a psychological level; it may help to define the character of the weekly candle, which could have bullish or bearish implications, particularly at new highs. At this point in the trading week the incomplete price action has formed a white marubozu or a large white candle with little or… Read More »
These three stocks have been undergoing a squeeze, or a period of price compression that is usually resolved by a volatile move. The technical indicators suggest they will rise. Here are the charts of Cognizant Technology Solutions (CTSH), Donaldson Company (DCI), and Trinity Industries (TRN) published on TheStreet.com this morning.
Microsoft (MSFT) For the last two years, Microsoft (MSFT) shares have been moving in a repeating pattern of horizontal channel consolidations followed by measured moves higher. The recent highs have established another channel top, and should be followed by a retest of the channel low. If the pattern repeats, it would be a pullback of… Read More »
Shares of Apple (AAPL) rallied on Tuesday, closing near their highs and forming a bullish engulfing candle that encompassed the range of the previous four sessions. They look poised to move higher and should see follow-through strength this week, but the stock is getting overbought. It is a good time to look at where the… Read More »
The SPDR S&P Bank ETF (KBE) is retesting the lower end of the narrow horizontal channel it has been moving in for the last month. While the price range as contracted the recently, the percentage difference between the 50 day moving average and the 200 day moving average is at its largest spread since the… Read More »