As such, much of the knowledge we share on this blog focuses on recapping technical
chart patterns of past stock and ETF trades that led to successful, profitable -LSB-...]
Surprisingly, the tool is utilized by simply comparing the daily
chart patterns of any stock or ETF versus the S&P 500 Index.
In today's stock market video, we highlight the technical
chart patterns of the following stocks and ETFs, each of which may be setting up for potential swing trade entry: $ SPY, $ IWM, $ FB, and $ BBBY.
So, let's take a closer look at the daily
chart patterns of the Nasdaq 100 Index ETF ($ QQQ) and S&P 500 SPDR ($ SPY), two popular ETF proxies for the broad market.
If you're an active stock trader who is continually lacking the necessary time to do proper stock scanning and technical research every night, one of the fastest ways to find the strongest stocks in the market, at any given time, is to simply look at
chart patterns of stocks with the highest Relative Strength (RS)-LSB-...]
As a bonus, we then run the scan and highlight the current
chart patterns of six stocks setting up for breakout in the coming days: $ BUFF, $ CORT, $ CSC, $ EXAR, $ WATT, and $ XTLY.
If we were to focus only on
the chart patterns of the major averages when analyzing the market, we would be missing a big piece of the puzzle, which is market leadership.
This is necessary because the daily and weekly
chart patterns of various ETF families can vary greatly, depending on the underlying stock portfolio that comprises each ETF.
The relative strength of KRE vs. XLF is shown on the long - term monthly
chart patterns of XLF and KRE below:
Over the past few days, we have spent quite a few hours scanning the technical
chart patterns of hundreds of ETFs, looking for any ideal opportunities for the coming days.
Just for some initial perspective, let's check out the weekly
chart pattern of the S&P 500 SPDR ($ SPY), an ETF that mirrors the underlying index.
The chart pattern of transportation stock -LSB-...]
Until yesterday, it would be fair to say that
the chart pattern of SPY had not yet convincingly broken down.
Let's jump right in and give an actual example of how market timing works by looking at the daily
chart pattern of the NASDAQ Composite Index ($ COMPQ) below.
We'll tell you why it does not matter later in this article, but let's first take a quick look at the daily
chart pattern of the S&P 500 SPDR ($ SPY), a popular ETF trading proxy for the benchmark S&P 500 Index:
Taking an updated look at the long - term monthly
chart pattern of DGP, notice that it has also broken out above resistance of its downtrend line that began with to September 2011 high.
Blame it in no small part on the persistent bearishness and downright ugly
chart pattern of Apple ($ AAPL), a former market leader and heavily - weighted stock within the Nasdaq 100 Index.
The weekly
chart pattern of EPHE is shown below:
Drilling down to the shorter - term weekly
chart pattern of $ TBT, notice the major band of horizontal price support around the $ 71 area (highlighted in yellow).
Given the lack of follow - through in the stock market lately, we are pleased that
the chart pattern of this low - correlation ETF is presenting traders with such a low - risk buy entry point.
This is shown on the weekly
chart pattern of $ USO below:
Although the NASDAQ uptrend may still be in effect,
the chart pattern of the S&P 500 shows the benchmark US index is in much worse shape.
The current base building action is shown on the weekly
chart pattern of GXG below:
For starters, check out the annotated weekly
chart pattern of $ QQQ below:
The recent basing at the lows is shown on the weekly
chart pattern of $ KOL below:
Not exact matches
After the years
of consolidation, Worth noted that a wedge
pattern has formed on the
chart.
The combination
of breakout and rebound features on the Nikkei
chart are bullish and suggest a steady upwards move towards the long term
pattern target near 20,347.
On a
chart of the U.S. 10 - year futures, Ciana sees a «double breakout»
pattern that has recently occurred.
«I've never seen a
chart of a security where the price really has a vertical
pattern to it.
The Dow does not show any end -
of - trend
chart patterns.
The
charts show that euro - yen enters a variation
of a double - bottom
pattern used to set a new long - term upside target.
Similarities in the
patterns on the gold and silver
charts mean the silver price follows the behavior
of the gold price, says Daryl Guppy.
The similarity in the
patterns on the gold and silver
charts means the silver price follows the behavior
of the gold price.
Quoctrung Bui
of The New York Times
charts the trends and finds some interesting
patterns.
On the annotated weekly
chart of $ GLD below, notice the descending triangle
pattern that preceded last Friday's breakdown below key horizontal price support:
Study the
charts of today's performers and you'll see plenty
of relative strength clues in the previous price
patterns.
The Buying Opportunity For years we have kept «watch lists»
of both listed and unlisted securities based on
chart patterns.
While money has flowed out
of BRIC ETFs (Brazil, Russia, India, China), Southeast Asia continues to be a hot spot with bullish
chart patterns in Indonesia ($ EIDO), Thailand ($ THD), and Singapore ($ EWS).
In addition to this $ VXZ trade setup, note that we still have $ QQQ on our watchlist as a potential short entry (or inverse ETF entry), due to the head and shoulders
pattern on its weekly
chart (review our recent analysis
of this setup on this blog post).
Zooming out to analyze the longer - term monthly
chart of $ KOL, the technical
pattern becomes even more clear.
However, the price has since settled into a consolidation
pattern, with four consecutive weeks
of tight closing prices on the weekly
chart.
Glaucoma treatment maker Glaukos Corp ($ GKOS) currently has one
of the strongest stock
chart patterns within the healthcare sector.
When we first alerted you to these bullish
patterns in our April 10 blog post, most
of the
chart patterns were not yet actionable.
A base on base
chart pattern occurs when the price action
of a recent breakout is unable to extend much beyond the highs
of the prior base (former resistance), but also doesn't give up much ground.
Combo Setup — The stock must have a combination
of great earnings growth and strong technical price action (some type
of bullish
chart pattern).
Although there may be hundreds
of stocks with nice - looking
chart patterns in a typical bull market, getting in the habit
of checking for ample volatility (Price / ATR Ratio) and liquidity is an excellent way to further narrow down your arsenal
of potential stock trades to consider.
However, over the years, I have found the head and shoulders to be one
of the more reliable
chart patterns (but only in a weak or downtrending market).
As stocks attempt to form a significant bottom since bouncing off their November 16 lows, many traders
of stocks and ETFs may now be wondering how to find the best, most bullish
chart patterns and stocks to buy now.
The rest
of the major indices closed with the same topping
pattern on their weekly
charts.
The Great Expectations
chart below shows 2017 earnings estimates turned the corner after a string
of disappointments, with 2015 and 2016 depicting the more typical
pattern in post-crisis years.