The 10 Stock Charts You Need to Watch in September

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In case you hadn’t heard, the S&P 500 Index briefly passed the 2000 mark earlier this week. The milestone led to a flood of bullish commentary, prompting calls for the index to continue hit 2100 to 2200 in fairly short order.

If the favorable trend continues — and the news flow cooperates — optimistic investors have no shortage of individual stocks to consider for potential breakouts in the weeks ahead.

Ten stock charts stand out, spanning a wide range of sectors and market capitalizations.

Comcast (CMCSA) and Liberty Interactive Corp. (LINTA)

The consumer discretionary sector, which includes media stocks, may be the richest vein of breakout candidates.

Last week, the Consumer Discretionary SPDR (XLY) surpassed resistance to move out to a new 52-week high. Typically, such a move in a sector ETF means it’s time to look at individual names that may follow suit — and provide more beta than the ETF itself.

That’s the case right now, as no fewer than four stocks in the sector are trading just short of key resistance levels. Two media stocks — Comcast (CMCSA) and Liberty Interactive Corp. (LINTA) — are on the verge of 52-week highs. Comcast is the cheaper of the two (16.6 forward P/E vs. 22.2 for LINTA) and thus may have more upside on a breakout.

While these names aren’t thought of as go-go momentum stocks favored by technicians, there’s a precedent for big technical moves in the media group. Earlier this year, Time Warner (TWX) — which we flagged in this late-May article as a breakout candidate — moved more than 7% after surpassing resistance, and that was before it surged on a takeover bid.

With this as background, the stock charts of both Comcast and Liberty Interactive warrant a look:

CMCSA

CMCSA

LINTA

LINTA

Nike (NKE) and VF Corp (VFC)

The consumer discretionary sector also is home to Nike (NKE) and VF Corp. (VFC), whose stock charts show a pair of equities primed for a breakout.

Nike just met resistance near $80 for the fourth time in the past year, and it pulled back slightly on Thursday. NKE stock is only slightly above its 50- and 200-day moving averages, which means this story could be delayed in short order, but for now the strength of the resistance line indicates that Nike deserves a spot on traders’ watch lists.

NKE

NKE

VFC stock, for its part, has nosed into new high ground in the past week, but it has since given up ground. Like NKE, VFC also warrants caution due to the proximity of its moving averages. Still, the stock has printed a strong formation in a healthy sector, and it appears set to move higher in a benign tape.

VFC

VFC

AutoZone (AZO) and Genuine Parts (GPC)

Traders should also add AutoZone (AZO) and Genuine Parts (GPC) to their watch lists, as the stock charts of each are printing bullish patterns. Auto-parts stocks, in general, have established solid formations, and GPC appears to be the best of the bunch.

AZO

AZO

GPC

GPC

United Continental (UAL)

Outside of the consumer discretionary group, United Continental (UAL) is sitting very close to its 52-week high of $49.52. Notably, the $50 area serves as a key resistance point on the longer-term chart as well, as this level marked the pre-crisis 2007 high. If oil prices — and economic conditions — cooperate, UAL could experience meaningful upside this autumn.

UAL

UAL

Ametek (AME)

In the technology sector, the mid-cap electronic instrumentation company Ametek (AME) offers a potential opportunity for both bulls and bears. On one hand, the stock is within a few percentage points from a strong resistance line at $54.50. On the other hand, it’s also only a hair above its 50- and 200-day moving averages. AME stock has strongly defined support at $48, providing a clear reference point on the downside if the current assault on its previous high fails.

AME

AME

Check Point Software (CHKP)

Another technology stock, Check Point Software (CHKP), moved to a new high this week before giving up some ground on Thursday. CHKP stock has printed a bullish chart, and it’s worth noting that its shares have typically peaked at about 25 times trailing earnings. The stock is currently trading with a trailing P/E of 21, so there’s room to move if the broader market keeps climbing.

CHKP

CHKP

Royal Bank of Scotland (RBS)

Last but not least, Royal Bank of Scotland (RBS) is at the top end of a strongly defined channel that ranges from $10 to $12.50.

This one is by no means a slam dunk, but RBS is very volatile for a bank stock, with a beta of 1.82. If it can manage to break out, traders could be looking to a move of $13.25 in a matter of just a few days. The stock currently trades just below $12.

RBS

RBS

As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/08/10-stock-charts-need-watch-september/.

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