Some days are hot, some days are not. That’s the ebb and flow of trading in the stock market, and the charts can help us to navigate both the good days and the not-so-good ones.
As the trading week ended on Friday with downward pressure on many stocks, it might have felt like everything was in the red. Yet, there always seems to be at least a few stocks that go against the trend and fare well during the market downturn.
It’s worth watching these maverick stocks as they’re showing resilience in tough times, which could be a very bullish sign. Therefore, Monday’s big stock charts feature names that held up well even when the overall market sentiment was decidedly risk-off.
Clorox (CLX)
If cleaning products are in heavy demand during the spread of the novel coronavirus, then Clorox (NYSE:CLX) shareholders could benefit from that. But did CLX stock “clean up” on a day when the bears seemed to be in control of the equities markets?
- We can see a very interesting-looking candlestick for CLX stock on Friday. This is a spinning top candle, which has a small body and also has large upper and lower wicks. That implies that there was a lot of price movement but it wasn’t decisive in either direction.
- CLX stock is now above the 20-, 50-, and 200-day moving averages. That is certainly in the bulls’ favor, as these are significant hurdles to clear.
- On the positive side, CLX stock remains within a channel that is trending upwards. Buyers still need to be cautious because there is a double-top formation at the $200 level.
Newmont (NEM)
If you like to delve into the world of metals and mining, then Newmont (NYSE:NEM) is probably quite familiar to you. This is a famous name in the mining space with a focus on gold but also interests in silver, copper, lead, and zinc. Looking at the NEM stock chart could give us some insight into how the company and its shareholders are doing during this turbulent time.
- Friday was a triumph for NEM stockholders because it managed to stay above the three major moving averages. It is also noteworthy that these three moving averages are pointing upwards.
- The other side of the coin, however, is that the daily trading volume for NEM stock has been declining. The bulls will want to see the volume pick back up in order to ascertain that there’s conviction on the long side of the trade.
- There’s some resistance at the $65 level, so more cautious NEM stock traders can take partial or full profits there. Clearing that level, however, could signal more upside ahead for the stock.
ResMed (RMD)
With the outbreak of the coronavirus, traders took more of an interest in ResMed (NYSE:RMD) stock. That’s probably because the company is in the business of supplying medical devices. Does the last of today’s big stock charts indicate healthy profits in the coming days?
- The main feature on the RMD stock chart is that the bulls are battling with the bears over the 20- and 50-day moving averages. Over the coming days, we will find out which side of the trade emerges victorious.
- The candlestick printed on Friday has no upper wick. This indicates that RMD stock closed at or near the highest price of the day. This is a bullish sign for sure, and a strong finish to the week.
- Still, this is no time for the bulls to be complacent. There is moderate resistance at the $175 level, so caution will be advised if and when RMD stock gets there.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
