Check out the charts of Exxon Mobil (XOM), Van Eck Sectors Oil Services ETF (OIH), and the West Texas Intermediate Crude Continuous Contract (WTIC) for an overview of the broad energy sector, in my article on TheStreet.com this morning.
Nike (NKE) shares have been making a series of lower highs and lower lows since the end of 2015, and the price action has formed a large declining channel. The stock price has recently penetrated the downtrend line of the channel and the pattern price projection targets a potential move back up to the all-time highs. Here’s the full chart analysis published on TheStreet.com this morning.
The stock is breaking out of a channel within a channel, and each pattern projects a move higher. Here’s the story published this morning on TheStreet.com.
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 no upper and lower shadows, which is considered to be a bullish candle. But the weekly candle still has another day to mature.
If the index were to see a pullback of 100.92 points from its close on Thursday, it would move back below the 20,000 level and form a moderately high wick candle. This high wick or long upper shadow would not qualify as a shooting star or doji candle but would reflect some level of rejection. A shooting star or a doji would require a close approximately 200 points or more lower, and that would clearly be a bearish candle.
So, the 20,000 level has more than just a psychological implication. The ability to hold above it will color the weekly candle and, perhaps reveal a little about investor conviction.
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 approximately 16% (or about a $78 billion hit to Microsoft’s market cap) and return shares to the $55 level. Here’s the link to my article published on TheStreet.com this morning.
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 current levels of support are, and the next level of potential resistance could be using the daily and weekly charts. Here’s a link to my article posted on Thestreet.com this morning.
The US dollar reacting to comments from President-elect Donald Trump today headed south with the PowerShares DB US Dollar Index Bullish Fund (UUP) gapping lower and closing down 0.92% in the session.
The sharp drop in yesterday’s session took the price of crude oil back down to retest the neckline of a multi-year inverse head and shoulders pattern on the weekly chart.
It also helped to reverse the upward bounce last week off a channel consolidation low on the Schlumberger (SLB) daily chart. The channel top is defined by three previous highs and a breakdown below support would confirm a triple top, and a coordinated failure on multiple timeframes.
Facebook (FB) shares have been consolidating in a horizontal channel pattern since their sharp drop in October. The combined price action has formed a large bearish flag on the weekly chart, and a break below the pattern support line takes out a long-term uptrend line and projects a potential 15% decline in the stock price. Here’s my analysis of the charts published on TheStreet.com this morning.