Traders came back from the weekend in a much more optimistic mood than how they ended last week. The S&P 500 finished Monday’s action up 0.28%, led by Halliburton (NYSE:HAL) and Applied Materials (NASDAQ:AMAT)
Halliburton rallied more than 9% after the oil giant topped its second-quarter earnings estimates, and despite missing revenue expectations. Applied Materials advanced 6.1% in response to new bullishness from Goldman Sachs on the entire memory chip sector.
Weighing stocks down more than any other was the near-2% tumble from Verizon (NYSE:VZ). The telecom giant’s shares fell for no company-specific reason. Rather, telecom names in general, and their income orientation, has been falling out of favor for several days now.
None of those names are interesting trading prospects headed into Tuesday’s action, however. Rather, it’s the stock charts of Western Digital (NASDAQ:WDC), Boston Properties (NYSE:BXP) and Huntington Bancshares (NASDAQ:HBAN) that merit the closest technical looks.
Western Digital (WDC)
On April 17, Western Digital was pegged as a breakout candidate. A choppy but powerful rally managed to shove WDC stock out of a short-term trading range on major volume, simultaneously pushing the tech stock over its 200-day moving average line plotted in white on both stock charts.
The move faltered as quickly as it took shape, with Western Digital shares rolling over the next day and not looking back until the late-2018 low was revisited. Then, an even more powerful rally took shape again to wind up bumping into that very same April resistance. This time though, WDC stock has a good chance of following through.
Boston Properties (BXP)
Far more often than not, a wedge-shaped pattern made by a stock or index chart squeezes that index or stock toward a tip of the wedge, building pressure the whole time. Once there’s no means of containing that pressure, it’s unleashed, pushing that underlying instrument higher or lower in a big way.
Boston Properties has dished out the opposite of that typical converging wedge pattern since early 2017, however. That is to say, the trading range has been expanding rather than narrowing. It’s not mattered yet, but as of Monday, BXP stock is dangerously close to breaking under a near-term support area that could drive shares considerably lower.
Huntington Bancshares (HBAN)
Late last month, Huntington Bancshares was making a third attempt to hurdle a well-established, falling resistance line that had been repeatedly augmented by the 200-day moving average line. The swell of bullish volume behind the effort at the time, however, made that particular move the most compelling yet.
HBAN ended up clearing the hurdle, but soon found another one. That is, the April/May high near $14 once again kept the bulls at bay. The buyers may have only needed to regroup though. The odds of a full-blown breakout thrust developing here continue to improve, even if Huntington Bancshares stock seems range-bound for the time being.
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.