Amazon Bookends

By | June 20, 2014

Shares of Amazon (AMZN) are trading within the borders of a short term uptrend line and a intermediate term downtrend line. The price momentum indicators had been trending higher, but now they’re turning over, and money flow while still positive, is crossing below its 21 day moving average. Ultimately, the integrity of the trend lines… Read More »

Facebook at Key Support

By | June 20, 2014

The chart of Facebook (FB) needs little explanation, as the stock is testing the top end of a channel defined by the April/May highs. The 50 day moving average and the long time uptrend line drawn off the lows since August 2013 are nearby, but a close below the channel top will take me out… Read More »

TLT Engulfing Candle

By | June 20, 2014

An extremely large engulfing candle formed on the daily chart of the iShares Barclays 20+ Year Treasury Bond Fund (TLT) that encompasses this entire month’s trading range. In addition, it closed below its 50 day moving average and on very strong volume. A successful breakdown from the horizontal channel projects down to the 109.50 area.

Percent of Stocks > 50 DMA

By | June 19, 2014

Eighty eight percent of stocks in the S&P 500 index are above their 50 day moving average, a level that many consider an overbought condition that should precede a pullback. This, however, is not usually the case, but by incorporating the relative strength index (RSI) in the analysis, the likelihood of determining a pullback increases.… Read More »

Regeneron Head and Shoulders Top?

By | June 18, 2014

The price action in Regeneron Pharmaceuticals (REGN) over the last nine months could be forming a large head and shoulders topping pattern on the weekly chart. During this time the MacD indicator has been in bearish divergence and positive money flow has been declining. The neckline is defined by an intersection of long and short… Read More »

Amazon – Levels to Trade

By | June 18, 2014

Here’s a look at the Amazon (AMZN) chart ahead of today’s 3-D smart phone announcement. The daily chart shows the pullback in the stock this year and the subsequent bounce in May, which took it back to a downtrend line drawn off the January and March highs. At that point it formed a high wick… Read More »