Though the market didn’t fully recoup its losses suffered earlier in the week, stocks at least finished the week on a high note. Following through on Thursday’s intraday reversal, the S&P 500 rallied 1.42% on Friday.
Clorox (NYSE:CLX) fared even better, albeit with a smaller net impact, rising 3% after investors had time to digest Thursday’s announcement. Although the dialed-back profit outlook for the full year spooked shareholders, investors decided the company’s new revitalization program called IGNITE holds promise.
Holding the market back more than most other names was HP (NYSE:HPQ), which fell nearly 10% in response to a bold but dangerous new strategy. A key component of the new plan includes higher priced printers and less flexibility in terms of printing supplies.
When we last looked at Nvidia back on August 23rd, shares were knocking on the door of a break above a key technical ceiling. That ceiling, in fact, was the upper, falling boundary of a converging wedge shape.
It took a little more time and a lot more effort, but that finally happened. In early September NVDA broke above that resistance. The move cooled off a few days later, but that breakout was renewed this past week with a pushoff from a pivotal technical floor.
Click to EnlargeThe converging wedge shape in question is plotted on both stock charts, with dashed blue lines. Notice that Nvidia shares remained above the upper boundary with last month’s lull.
- When tested last week (and the week before), the purple 50-day moving average line held up as support and provided the pushoff point for the renewed bullish move. That’s highlighted on the daily chart.
- The undertow is healthy, but there’s a major resistance line around $193, plotted as a yellow dashed line on both stock charts. That’s where NVDA peaked in April, and moving past it would bring the stock to new multi-month highs.
Dentsply Sirona (XRAY)
With nothing more than a passing glance Dentsply Sirona shares look volatile, to the point of being unpredictable. A closer second look at XRAY stock, however makes clear that there’s been a method to the madness. Dentsply is finding support at the places it most needs to find it.
On the flipside, so far, XRAY shares are bumping into well-established technical resistance. A move above that technical ceiling could prove catalytic, though there’s one more hurdle above that one.
Click to EnlargeThe technical ceiling in question is $53.80, plotted in yellow on both stock chart. That’s where XRAY stock topped several times in the past two weeks, and where shares peaked in August.
- Although not yet over the hurdle, so to speak, Dentsply Sirona shares have consistently found support at the white 200-day moving average line. They’re also pushing up and off the line that connects all the key lows since April, plotted with a red dashed line on both stock charts.
- Even if the ceiling around $53.80 is cleared, the gray 100-day moving average line could prove problematic. It’s presently at $54.37, though sinking a little now.
Tyson Foods (TSN)
Tyson Foods shares started the year out with a bang. But, since May, has been erratic and choppy. So far it’s still held up, finding support at what have turned into well-established technical floors. The way TSN shares continue to chip away at that support, however, brings that prospect closer every day. What failed to happen last month makes it all the more likely.
Click to EnlargeThere are two key technical floors in play connecting all the key lows since May. They’re plotted in yellow and blue on both stock charts. Friday’s close was right at one, and right under the other.
- It’s easy to look past, but last month’s high near $90 was well below the August high near $95. The failure to even match its prior peak suggests the bulls are losing interest, and confidence.
- Zooming out to the weekly chart of Tyson Foods, we can easily see the RSI just came out of an oversold condition, and we just saw a bearish MACD crossunder. The newness of both of those clues is telling.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.