Pent-up buying and a few days of good earnings have put many in the market into a buying mood again. The list of companies that snapped their respective top Bollinger Band grew even larger overnight as the geopolitical concerns around the world appear to be melting away, at least for now.
Today’s three big stock charts look at another batch of companies that are seeing bullish volatility breakouts as technical support and breaks above their Bollinger Bands signal short-term rallies that may turn to trends. Among the names are Intel Corporation (NASDAQ:INTC), Sysco Corporation (NYSE:SYY) and Raytheon Company (NYSE:RTN).
Intel Corporation (INTC)
Is Intel playing catch-up or is it getting ready for a breakout, or both?
The semiconductor leader, in size only, has been lagging the market for some time as the smaller, more nimble companies have been moving ahead in terms of performance.
Year-to-date performance shows INTC’s weakness, posting 1.5% gains compared to the rest of the market gaining 8%.
From a technical perspective, Intel’s trendline analysis looks somewhat healthy as many of the companies within the sector. Trading above the 50- and 200-day trendlines that are also moving higher themselves, INTC is what we refer to as a technical bull.
So, what about the underperformance? Volatility is the simple word. Intel is trading like a lumbering large cap now (which it is) as the shares have little to no volatility in their daily motion. All the while, the smaller companies in the sector are leaving INTC in the dust.
So where from here? Intel is getting ready to benefit from a confluence of technical support at $36. Currently, the 50-, 100- and 200-day moving averages are all converging at $36. In the meantime, yesterday’s price move took the stock above its top Bollinger Band. Expect the bullish support and volatility signal to help shares rally back to $38.
Sysco Corporation (SYY)
The “other” Sysco hasn’t been performing much better than the networking company as the stock has lost 4% year-to-date. That said, a turnaround appears to be in the making.
SYY stock recently grabbed trendline support from its 200-day moving average. This line has been trying to give shares a boost for the last month.
Recently, the 50-day entered the picture to lend a hand, which appears to be helping at this time. The stock moved above this key trendline two days ago and has now broken above its top Bollinger Band too.
Fast forward to today, Sysco shares are looking at overhead resistance from the 100-day at $53.35 and from our look of the charts, that’s the only thing that stands in the way of a run to $56 as the stock will pickup momentum from there.
Watch for the overbought indicator to potentially slow things down, but for now SYY shares are considered a technical bull.
Raytheon Company (RTN)
Defense companies are coming back now that it is clear that the new administration is going to have to continue to pressure a number of geopolitical situations with proposed military action. The budget, which should be released soon, will likely show an increase in defense spending after years of cuts.
Raytheon shares are showing the fundamental improvements with a move back above $155 and towards new highs. RTN stock remains in technically bullish mode with the support of its 50-day trendline adding strength to the current recovery.
Recent volume has shown that the traders have been holding back on engaging Raytheon stock ahead of its earnings report, but the break into new high territory will likely change that as the volatility signaled by the top Bollinger Band break will also help get the RTN bulls active again.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
