3 Big Stock Charts for Tuesday: Invesco, Gap and Fidelity National Information Services

The market's continued, slow forward progress is pushing some stocks into new breakouts

Picking up where they left off last week, the bulls logged another gain on Monday. The S&P 500’s close of 2,832.94 yesterday was the best close since early October, though volume was suspiciously light.

3 Big Stock Charts for Tuesday: Invesco, Gap and Fidelity National Information ServicesGeneral Electric (NYSE:GE) led the way with a 2.4% gain, continuing a recovery driven by faith that a bigger-picture turnaround from the company is brewing. Bank of America (NYSE:BAC) wasn’t far behind with its 1.8% advance, however, pushing it well past a hump discussed in detail late last week.

Facebook (NASDAQ:FB) proved to be the biggest drag. Shares of the social networking giant fell 3.3% mostly thanks to a downgrade from Needham. Analyst Laura Martin is concerned that changes to the company’s business model could crimp earnings. Martin also noted the adverse impact of what’s quickly becoming a mass exodus of senior-level executives.

Headed into Tuesday’s trading action, however, it’s the stock charts of Invesco (NYSE:IVZ), Fidelity National Information Services (NYSE:FIS) and Gap (NYSE:GPS) that are worth the closest looks. Here’s why, and what to look for.

Fidelity National Information Services (FIS)

With nothing more than a quick glance it would be easy to jump to a bullish conclusion about Fidelity National Information Services, or as it’s more commonly called, FIS. The 50-day moving average line has crossed back above its 200-day moving average line as of the end of last week, and it hit a new multiyear high yesterday.

In many regards, though, the one thing more alarming than losing ground is a failed breakout thrust. That’s what we saw take shape with FIS stock on Monday, leaving traders with a tough choice to make, and soon.


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• The volume surge from Monday stems from news surrounding the recently-announced acquisition of Worldpay that Fidelity intends to make. Investors initially loved the idea, buying in earnest. That optimism quickly faded though, turning into a “sell the news” event.

• Regardless of the underpinnings, if this is indeed a “sell the news” minded response, yesterday’s action serves as a potential pivot.

• That pivot will only be complete, however, if we see a close below the gray 100-day moving average line sometime this week.

Gap (GPS)

In the same vein as the FIS chart, shares of Gap have just gone through a volatile shakeup that actually clears the deck for some more meaningful movement. But, GPS is much further along in the process, and ultimately positioned to move in a bullish rather than a bearish direction. And, like Fidelity National, there’s a little more work that needs to be done to seal the deal.


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• The big bullish move from early March was impressive, but clearly not built to last. Two weeks later, the gap had been closed (for the better).

• Friday’s bar is telling … the shape of it in particular. Though the stock closed at a loss for the day, it also closed well off the low for the day. The intraday reversal on high volume suggests the buyers were starting to wade back in.

• A close back above the 100-day moving average line, plotted in gray, would cement the second wave of the recovery effort in place.

Invesco (IVZ)

Back on Feb. 26, Invesco was featured as a breakout candidate. Straight-line resistance had been snapped, and a key moving average line was on the verge of being hurdled. An upside-down head and shoulders pattern was even near completion.

All of that has played out as suggested, even if the rally took a breather a couple of weeks ago. The advance since then has confirmed and renewed that rebound work. But, for traders that didn’t step in then, there remains a great deal of room for more recovery.


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• The head-and-shoulders pattern is evident on both stock charts.

• The bears’ best shot at quelling the rally effort was preventing the move above last month’s high around $19.90, marked with a blue dashed line.

• Even with the recent strength, Invesco shares are still down roughly 40% from their early 2014 high, and below their white 200-day moving average line. That’s the next most plausible technical resistance.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley.


Article printed from InvestorPlace Media, https://investorplace.com/2019/03/3-big-stock-charts-for-tuesday-invesco-gap-and-fidelity-national-information-services/.

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