The tug-of-war continues. The bulls won Wednesday’s contest, sending the S&P 500 higher. The action marks the seventh straight trading day stocks have logged a reversal of the prior day’s action though, and the market remains squarely between major support and resistance levels.
Advanced Micro Devices (NASDAQ:AMD) carried more than its fair share of the weight, advancing nearly 2% and followed closely by the 1.4% gain Bank of America (NYSE:BAC) shares logged. AMD wasn’t up for any particular reason other than it tends to move in the same direction as the market … just more so. BofA was up for largely the same reason, though a glimmer of hope in the interest rate front may have helped Wednesday’s move.
As for names worth a closer inspection headed into today’s action though, it’s the stock charts of Tiffany & Co. (NYSE:TIF), Regions Financial (NYSE:RF) and Arconic (NYSE:ARNC) that are of the most interest. Here’s why.
Regions Financial (RF)
With nothing more than a quick glance, Regions Financial shares just look like a choppy mess. The stock has been as low as $12.40 and as high as $17.90 within the past year, but at its current price of $14.10, it’s right where it was as of mid-December.
There has been a quiet method to the madness the whole time though. RF stock has been working its way toward a breakout move — probably a bullish one — and proverbially fueling the tank to make a prolonged move once it’s triggered. The trick is pulling the trigger.
Commodities-driven stocks are tough to handicap. Not only are they subject to fluctuations in global economic strength, there are supply and demand fluctuations that make them perpetual moving targets. That’s doubly the case right now, given the ongoing tariff war between China and the United States, which has specifically put industrial metals into the middle of the political bickering.
The fact of the matter is, however, the shape of the Arconic chart suggests the specialty metals company is working its way into something fundamentally spectacular. It just needs one more good “oomph” to reach that tipping point.
Tiffany & Co. (TIF)
Lastly, it needs a clear sign of follow-through, but yesterday’s action from Tiffany & Co. shares has thus far given some of the tell-tale signs of a reversal out of a downtrend and into an uptrend. How far any rebound effort might go is in question, to be sure, but given the context, TIF stick is most definitely a name to keep an eye on. Wednesday may have been a key capitulation.
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.