Still some decent charts out there

After reviewing the market index charts this afternoon, I expected to not find many potential longs tonight. $SPY closed near its lows today and fell back under its 50-day moving average. And while $IWM has been stronger, it also looks like it has room to pull back towards it 50-day moving average as well.

However, I did manage to find more than a few charts that escaped today relatively unscathed.

$CRI for instance traded in a narrow range candle and formed an inside day. While the candle shows sellers were in control for the day, the overall pattern of consolidating above the prior base remains intact. Maybe $CRI pulls back to test the base again, but overall it still looks pretty healthy to me.

cri

$CME is another one that still looks pretty good too. It cleared a prior trendline and is now flagging in a tight consolidation. I’d be interested in this stock on any strength that clears this area.

cme

 

$ORLY actually closed near its highs today, although it was slightly lower from the prior close. In essence, its just another consolidation day as it continues to form a base. $ORLY is probably pretty close to either attempting a breakout, or pulling back towards $121 again.

orly

 

Another I will be watching pretty closely is $KFY. Flags have been working in this market and $KFY has shown very little weakness over the past month. Strength over $22 could lead to a nice breakout.

kfy

 

There is enough in this market to make me very cautious. I am seeing some stocks fail on their breakouts and some leaders like $AMZN and $TSLA have been looking a little tired. Of course we have the Government shut down hanging over things as well, but seeing healthy charts keeps me optimistic that this can still be a stock pickers market.

Good Trading,

Joey

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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