After multiple days of outsized price moves, the stock market was indecisive on Thursday. For hours at a time, stocks went nowhere or darted to and fro, causing confusion and frustration.
That’s going to happen sometimes and traders need to be ready for noncommittal price action in the markets. Head-fakes and sucker’s rallies are commonplace. Big stock charts can help us to see the big picture and make sense of seemingly senseless markets.
Stocks that move sideways or show choppy price action are sometimes worth watching. If you look for the signs, you might find a stock that’s ready to trend in one direction or the other.
And so, today we’re going to check three big stock charts for Friday that look indecisive but might just be coiled for a serious move in the near future. Let’s end the week on a high note and bring out the charts!
Some folks consider AT&T (NYSE:T) stock to be a safety investment. It’s the type of stock that your father and your grandfather might buy and hold for decades. Thus, it’s not always the most volatile stock in the world, and Thursday’s price action confirmed this. But maybe the future will bring some excitement for AT&T shareholders.
- Thursday’s candlestick for T stock has a small body, indicating that the stock’s opening and closing prices are not very far apart. On the other hand, the lower wick and the small body form a hammer candle. That’s typically considered a bullish candlestick formation.
- T stock is still for below the 200- and 50-day moving averages. However, the stock has managed to stay above the 20-day moving average. The bulls really need for the price to hold above that moving average.
- Support is at the $26 level. That could be a buy zone if there’s a bounce there, but if T stock breaks below it, that would be quite bearish.
Semiconductor standout Broadcom (NASDAQ:AVGO) is sometimes volatile, sometimes not. On Thursday AVGO stock chopped up, down, and sideways. Ultimately, there just wasn’t much meat on the bone here for momentum or directional traders. Still, this stock has made some sizable moves in the past and you never know what’s right around the corner.
- Although AVGO stock barely went anywhere on Thursday, at least the overall trend is still upwards. Still, the bulls will want to see higher prices in order to maintain that trend.
- The megaphone chart pattern has become extremely wide. This suggests broadening price moves in both directions, so caution is definitely advised.
- Momentum traders seeking to ride the uptrend should observe that AVGO still needs to break through the 50- and 200-day moving averages. Plus, there’s some resistance at the $320 level.
Charles Schwab (SCHW)
Some banks and brokers are thought of as American institutions. The third of our big stock charts, Charles Schwab (NYSE:SCHW), would probably fall into that category. It’s an older company that’s highly respected, but SCHW stock isn’t always a lightning rod in terms of price action.
In fact, on Thursday the stock fluctuated within a range, much to the chagrin of action-seeking traders. Nevertheless, it’s a perfectly tradable stock that could have strong profit potential for nimble market participants.
- There wasn’t a whole lot of action in SCHW stock on Thursday. The market is evidently still deciding whether the $35 level is going to provide support or resistance.
- SCHW stock is sitting right on the 20-day moving average. Hopefully for the bulls, the stock won’t break below that important line.
- Volume has been dwindling, so that’s another sign that the market hasn’t made a firm decision on this stock yet. It’s perfectly okay to sit on the sidelines and wait until the market is more decisive.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.