3 Big Stock Charts for Thursday: FirstEnergy, Boston Scientific and Mondelez


Stocks finally found their ceiling, right where it would have been expected. The S&P 500’s close of 2731.61 was down 0.22% from Tuesday’s last trade, with the 200-day moving average line confirming its role as a technical problem.

Video game companies led the drop. Electronic Arts (NASDAQ:EA) kicked off the meltdown, falling 13% in response to disappointing guidance. Shareholders applied the same doubt to rivals Activision Blizzard (NASDAQ:ATVI) and Take-Two Interactive Software (NASDAQ:TTWO), however, sending them 10% and 14% lower on Wednesday.

Not every name ended yesterday in the red though. Snapchat parent Snap (NYSE:SNAP) jumped 22% on Wednesday after posting encouraging Q4 results and then being upgraded by a handful of analysts.

All of those moves are far too volatile to chase, however. Instead, tamer stocks charts like those of FirstEnergy (NYSE:FE), Boston Scientific (NYSE:BSX) and Mondelez International (NASDAQ:MDLZ) are shaping up as better, more reliable prospects.

Boston Scientific (BSX)

Source: ThinkorSwim

During the latter third of last year, Boston Scientific shares broke above a long-standing trading range. Though impressive, it also appeared to be a setup for a major pullback.

We got that pullback, though not fully. Since the end of December, MDLZ has pushed its way back above that resistance line. With a tankful of momentum at its disposal, Boston Scientific could forge ahead to higher highs again. There’s one ceiling that needs to be broken first, though it was cracked yesterday.

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Source: ThinkorSwim

• The more immediate technical resistance lies at $38.60, where shares peaked three times in October and November. BSX closed above that level on Wednesday, but it’s far from set in stone.

• It’s only a fairly recent development, but there’s a large amount of volume behind the buying spree that took shape late last year.

Mondelez International (MDLZ)

Source: ThinkorSwim

Mondelez International shares have been a huge winner since late December, with last week’s 6.6% serving as a big exclamation point. It would be easy to be lured into being a buyer. Given the scope of the move in the rearview mirror, it would be easy to excuse this week’s breather.

There may be more to this week’s pause than just a chance for the rest of the market to catch up, however. A closer, bigger-picture look reveals this is where one would expect the gain to run out of gas and then pull back.

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Source: ThinkorSwim

• Bolstering the likelihood that a ceiling has already been hit is the fact that last week’s and this week’s highs around $48 are in line with one of the most frequently hit ceilings going all the way back to 2016.

• In the near term, Mondelez shares have stalled at a resistance level that has now tagged the past three major peaks going back to September. That line is plotted in yellow on both stock charts.

FirstEnergy (FE)

Source: ThinkorSwim

Finally, FirstEnergy isn’t in trouble yet. And, it may not slip into a downtrend — the stock’s still on the upper side of most of its key moving average lines.

When taking a step back and looking at the chart’s performance from a distance, however, it’s difficult not to notice the current tide has shifted from last year’s bullishness to brewing bearishness.

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Source: ThinkorSwim

• In the weekly timeframe, the MACD lines have been bearish since October.

• Though the tide may be modestly bearish, until FirstEnergy falls below and stays below the white 200-day moving average line, there’s still hope for a rebound move.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.

Article printed from InvestorPlace Media, https://investorplace.com/2019/02/3-big-stock-charts-for-thursday-firstenergy-boston-scientific-and-mondelez/.

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