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The idea that a stock is “on sale” isn’t one I normally mention, but there are a couple of decent-looking bullish charts which, today, are getting clobbered. Their bullish patterns have not been violated, however, so I offer you these two relatively young high-tech stocks for consideration:
SPX made it to the 3100 area as expected, and a bit higher, and is now at the last big inflection point area before a retest of the all time highs. Why is this a big area? Well this is the last big fibonacci retracement level, and there are two significant high levels here, the first rally high after the all time high at 3136.72, and the November 2019 high at 3154.26 made on the move up to the all time high. A break over these levels is fine, but if 3154.26 is converted to support then that opens the way for a possible test of the all time high at 3393.52. That’s a real possibility now, but we should at least see a retracement from this area.
SPX daily chart:
This morning was, of course, the jobs report, and the expected unemployment rate was 19.1%, with some estimates as high as 27%. Nope! It came in at 13%, and everyone’s jaws hit the floor as millions of jobs were actually added.
The airlines have been going absolutely ape lately. American Airlines doubled in price in the span of three weeks (incredible, yes?) Take a look at these three examples of larger passenger airlines. You can see the similarities.
I’m pleased to let you know of another entry into the SlopeCharts technical indicators library, which is the Average True Range (ATR).
The average true range (ATR) indicator appears in a pane of its own and indicates increasing or decreasing dynamism in a security’s price. Unlike some indicators, its ascent and descent have nothing to do with strengthening or weakening prices, but instead illustrates volatility.
The reason for this is the calculation for ATR is based on its dollar price range (either the difference between a day’s high and low or, when appropriate, the difference between the day’s high and prior close or the day’s low and prior close). The average of these values is the basis for the line chart drawn, and the default value of 14 days is the suggested value of the original creator of the study, Welles Wilder.
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