Some Potentially Bullish Chart Patterns, Sept. 14


With volatility so low, it can be hard to find movement in the big indexes. So today we’ll look at some individual stocks with potential opportunities.

We found these using methods and tools highlighted in our weekly Market Action webinar. Be sure to sign up for Monday’s installment for more.

Cisco System (CSCO) with indicators.

First, Cisco Systems (CSCO) appeared on my RadarScreen® recently as it held its rising 20-day moving average. And, it’s less than 1 percent from its 52-week high. (Indicators: MA-test, Distance from 52-week high.) That kind of squeeze between a rising moving average and a recent high creates the potential for continuation of its recent upward move.

One other potential positive on CSCO’s chart is that it recently pivoted at $46.44, above an earlier peak on May 10. In other words, old resistance is now support.

Boeing (BA) chart with moving averages.

Next, Boeing (BA) straddled all kinds of moving averages two sessions ago: the 20-day, 50-day and 100-day. That means it’s gone nowhere for several months… not a surprise when you consider all the drama between Washington and Beijing! But this week has brought signs of a thaw, and bullish demand guidance from the management team. (Indicator: MA-test.)

By the way, traders may want to watch Caterpillar (CAT) because it has faced similar geopolitical risks. But in recent sessions it’s pushed up from a basing pattern around $140, more or less in lockstep with BA.

Home Depot (HD) chart showing potential level.

Next, Home Depot (HD) rallied on strong earnings and broke out on hurricane news. It’s now easing back from its own record high but is near its old peak from January. Traders might want to watch this one for a day or two for confirmation of it finding support at the old resistance point.

Disclosure: This is post is for education purposes only and shouldn’t be interpreted as a trade recommendation.

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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.