11 Must-See Stock Charts for November

Advertisement

Most investors loathe volatility, but traders know that roller-coaster markets provide more than their share of opportunities.

NovemberHigher volatility also shakes up the technical picture, creating a larger number of interesting stock charts to consider for potential ideas. After all, the faster that stocks trade, the faster you can reap profits (as long as you’re betting in the right direction).

That’s indeed the case this month, as stocks’ sharp downturn and equally impressive rally have created opportunities across a wide range of sectors.

With this in mind, here are 11 charts that deserve a place on traders’ watch lists in November.

Stock Charts to Watch: BP (BP)

a

Energy stocks are one of the most controversial areas of the market right now. While bulls are pounding the table about the attractive valuations, bears cite the glut of supply and long-term downtrend in U.S. demand. For one energy stock — BP (BP) — this debate has helped create a defined support line just below the $40 level.

BP stock has already rebound substantially from its most recent low, but it offers investors the three-pronged benefit of a low P/E (9.8 times forward estimates), a 5.5% dividend yield, and a clear reference point for downside support. As long as BP stock can hold above this level, it represents a compelling play for those looking to position for an energy-sector rebound.

Stock Charts to Watch: Gazprom (OGZPY)

b

Gazprom (OGZPY) represents a much higher-risk energy investment. The stock has an absurdly low valuation, but it’s also at the epicenter of concerns about slowing global growth and sanctions related to Russia’s conflict with the Ukraine. Still, traders love the stock due to its tendency to make big moves in both directions. And right now, such a move appears to be in the cards.

Gazprom stock is currently trading near $6.50 — a level that has acted as support twice in the past year – and has proved to be the launching point for major rallies each time. At this level, the stock represents a high-beta play on sentiment regarding three key trends: Russia, the energy sector, and the European economy.

So which way will it go from here? Historically, Gazprom has performed better in the October-March interval than it has in the remainder of the year, and many of the concerns noted above have already been priced into the stock following its weakness of the past three months. Look for an opportunity to play for an upside move, but take care to use stops to help protect against headline risk.

Stock Charts to Watch: SPDR Gold Trust (GLD) and Market Vectors Gold Miners ETF (GDX)

c

d

This is an idea we highlighted last month in the top chart ideas for October. While the weak formation in SPDR Gold Trust (GLD) and Market Vectors Gold Miners ETF (GDX) hasn’t yet come to fruition in the form of rapid downside, that potential still exists as we move into November.

Given the broad weakness in gold and gold stocks thus far this year, not to mention the breakdowns that have occurred in a number of individual gold miners, it appears that it’s only a matter of time before these ETFs suffer from one final wave of capitulation before they wash out for good.

Stock Charts to Watch: Stryker (SYK) and Zimmer Holdings (ZMH)

syk

zmh

The near-term fortunes of the medical device companies Stryker (SYK) and Zimmer Holdings (ZMH) are largely dependent on headlines, since the outcome of the U.S. Senate races have a direct impact on the future of the medical-device tax. Still, the charts are very favorable here, with SYK and ZMH both flirting with a new highs.

Keep a close eye on these names for a trade, but be aware that headlines surrounding the U.S. mid-term elections will continue to be the most important factor driving the performance of medical-device stocks. Other charts to watch in this industry group include Thermo Fisher Scientific (TMO) and Intuitive Surgical (ISRG).

Nate Silver’s projection for the U.S. Senate is updated daily at fivethirtyeight.com.

Stock Charts to Watch: Harry Schein (HSIC)

hsic

The dental supply company Harry Schein (HSIC) has paused this year after posting gains of 25% and 42% in 2012 and 2013, but its chart indicates that the stock’s upward trend may resume before long. HSIC stock is closing in on its resistance level at $120-$121. The number of hits in this range indicates that the upside potential could be substantial if the stock can break out.

While analysts are calling for 10%-plus earnings growth in 2015, estimates have flat-lined in the past three months. The company is schedule to report earnings on November 6. If analysts are compelled to upgrade their estimates following a favorable report, HSIC stock may finally gain the fuel it needs to break out.

Stock Charts to Watch: Ericsson (ERIC)

eric

For investors who want to find more bearish charts, Ericsson (ERIC) is one of the most interesting you’ll find right now. At its current location near $11.63, shares of this Swedish telecom equipment company are close to support in the $11-$11.50 range following last week’s weak earnings report.

While this support is poorly defined, what matters most is that the amount of historical volume drops off under $11.50 in a gap from early 2013, and then it provides even less support under $11. If the broader market heads south again, ERIC stock could be extremely vulnerable here.

Stock Charts to Watch: Liberty Global (LBTYA)

lbtya

Liberty Global (LBTYA), the international cable/telecom company, is another stock on the verge of exceeding past resistance levels. After having traded above $45 this week, Liberty Global stock is closing in on its previous high just above $46. Earnings estimates are rising, and the stock has a short interest north of 10%, which could add to the momentum if it can break to new high ground. The company reports Monday, November 3.

Stock Charts to Watch: AutoZone (AZO)

azo

If history has taught us anything, it’s that the stocks of auto parts retailers can run much further to the upside than would ever seem possible. AutoZone (AZO), Advance Autoparts (AAP), and O’Reilly Automotive (ORLY) have delivered spectacular returns in the past three years, and AAP and ORLY have embarked on fresh rallies in the past month.

AutoZone stock may be next: Above its current level of $548, the only volume in the past 12 months is an intra-day surge to $561 in February. Given the strong formation, the proximity of new high ground, and the strength of its industry peers, AZO could be a good bet for further upside from here.

Stock Charts to Watch: JB Hunt Transportation Services (JBHT)

jbht

This chart speaks for itself. JB Hunt (JBHT) stock is making another assault on the $80 mark, a level that has represented resistance twice in the past year. JBHT isn’t exactly a value stock at 21.1 times forward earnings, and with a three-year return of 92%. But it’s coming off of a strong earnings report and is therefore in a position to benefit from strength in the broader transportation sector, as evidenced by this week’s new high in the iShares Transportation Average ETF (IYT).

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/2014/10/must-see-stock-charts-november/.

©2024 InvestorPlace Media, LLC