Charts To Watch!

Hi Traders,

It was a follow through week. Tacking on gains from the previous weeks strong recovery rally. Solid performance across the major indexes this week:

Some of the charts below have been shared over the previous couple of weeks watchlists. Many had experienced pull-backs along with the overall market, and are now recovering and setting up again. Some are beginning to break out or are very close to breakout levels.

Tickers

RSP, ESEA, SCVL, TMO, NU, WPM, DFS, SHW, CBRE, HD, LOW, WHD, BDC, BX, CUBE, DVA, ELV, GLD, SPGI, HOMB, TXN

Let’s get right into the charts!

RSP: S&P 500 Equal Weight ETF: I thought I would start out with this chart of the equally weighted S&P 500 since it provides a decent perspective of the market without the skewed nature of the cap weighted SPY ETF. We had an all-time weekly closing high last week. A big base breakout in March followed by a consolidation right above resistance since that breakout. Now price is beginning to flirt with new highs. A continuation could around the corner.

ESEA: Euroseas Ltd: Cup & handle pattern forming. Price broke out of this pattern last week with a gap above resistance and a close at new 52-week highs. The only thing to be mindful of is the very low volume in this stock which can create more erratic price action at times. Otherwise this chart is actionable right where it sits.

SCVL: Shoe Carnival formed a multi-year base pattern. There was a sharp pull-back along with the overall market over the previous weeks, but price quickly recovered and has begun pushing out of the right side of this base last week with a new weekly closing high on decent volume.

TMO: Thermo Fisher Scientific has been consolidating the past 3 weeks right at a well defined resistance level around $604. Price has formed multi-year base and is looking like it could potentially breakout to new 52-week highs in the coming weeks with strong potential upside.

NU: Nu Holdings is a volatile name. It experienced a sharp pull back in previous weeks, but was followed by an equally sharp rally all the way back to new all-time-highs. As long as price can remain over the $12.37 level which is also the IPO base breakout level, I am interested.

WPM: Wheaton Precious Metals broke out of this massive base a few weeks ago but tucked back under resistance as the markets were under pressure. Since, it’s recovered and is now pushing back over resistance on decent volume. As gold continues to be strong this could favour well as the stock attempts a second breakout attempt.

DFS: Discover Financial Services broke out of a multi-year base several weeks ago, but tucked back under resistance as the markets experienced a sharp correction. Price is now meeting with resistance again and might provide a second attempt at a breakout of this base.

SHW: Sherwin-Williams with a nice cup & handle pattern. There was a very minimal pull back over the past 2 weeks as the market was under pressure which is a strong sign. We’re just at the upper end of resistance as price starts to push over the resistance line. Decent volume is coming in as we make a new weekly closing high.

CBRE Group: formed a multi-year base pattern. Price has more or less consolidated right at resistance over the past few weeks. RSI is a bit high as price had a strong rally from $87 to $111 over the last 6 weeks. Further consolidation isn’t out of the question, but price is flirting with new all-time-highs and is on watch for an official breakout.

HD: Home Depot is in the process of completing the right side big multi-year base. The $339.50 area has been a resistance zone within the base and is now acting as a support level as price attempts to grind higher. I would have a stop below the previous lows which happens to line up with the 0.382 fibonacci level, but determine the correct risk management for your own system if taking long positions.

LOW: Lowes Companies with a similar look to HD except price completed the right side of this base, and is now pulling back right after testing the upper resistance which was previous all-time-highs. It looks to be forming a bit of a cup & handle pattern as this pull-back is developing. I’ve overlaid the 50 week moving average as a guide for price, as it slopes upward, I would want price to hold over the 50 week going forward.

WHD: Cactus Inc formed a multi-year base pattern and price recently broke out over resistance. It’s tightly consolidating just above resistance. I’ll be watching for continuation to the upside. This has a similar look to DVA which is a few charts down.

BDC: Belden Inc formed a year long base with multiple tests of the upper resistance zone around $99, right around the psychological 100 level. Last week price broke out over resistance signalling a potential next leg higher. Some nice volume bars developed as price was consolidating just under resistance over the past couple of months which is positive attribute to layer on top of this breakout. This chart is actionable right where it sits.

BX: Blackstone Inc was shared in previous newsletters. Price broke out over this slanted resistance zone, and pulled back to resistance as the market was under pressure. Price is sitting just over this resistance level currently. The 50 week moving average (which is not outlined on this chart just to keep it clean) is sloping upward and is not far behind price. I will let this act as a guide for price as we attempt to push higher.

CUBE: CubeSmart is still consolidating right at the 0.618 fibonacci extension level. This same level has acted as support back in 2021 and has been acting as resistance over the past 19 months. This is an important level for price to get above to signal a new leg higher.

DVA: DaVita was shared in my newsletter 2 weeks ago. Since then its began pushing higher and has made a new weekly all-time closing high. The volume pattern on this name has been great which adds confidence to this breakout. I’ve overlaid some fibonacci extensions as price targets going forward.

ELV: Elevance Health has been on watch for a while. Price is forming a cup & handle pattern and its currently testing resistance at $544. Watching to see if price can push over this line and signal the next move higher.

GLD: Gold got all the attention last week as it rallied into weeks end. GLD broke out of a multi-month consolidation after a massive multi-year base breakout in February. This is a classic continuation pattern. This chart is in play right where it sits.

SPGI: S&P Global Inc with a nice cup & handle pattern breakout. Price is tightly consolidating just above resistance. I’m looking for a continuation to the upside. As long as price holds over the line I am interested.

HOMB: Home BancShares has formed a beautiful multi-year base. Price broke out over resistance at $26 and rallied to $29 to complete the right side of this massive base. As the markets were under pressure in the previous weeks, it pulled right back to $26 which was resistance and has now acted as a support level. This provides a nice risk/reward opportunity on the long side. I want this to hold over support to remain interested.

TXN: Texas Instruments experience a pull-back along with the overall market in previous weeks. But price is back testing the upper resistance line as we closed last week. This level is a long standing resistance zone going back to 2021. I am looking for a clean breakout over this line to signal the next move higher.

I won’t be surprised if we experience some volatility in the coming weeks. We’ve made a sharp recovery rally which could bring with it some consolidation in many different forms. Regardless, I’ll watch price, and let price dictate any decisions.

Hope you all have a great trading week.

Together We Trade

Noah