Gilead (GILD), Kroger (KR) and NY Times (NYT)
Gilead (GILD) forms a bull flag. After a big surge on good volume in early November, GILD consolidated with a falling flag over the last few weeks. There was a bullish reversal day last Monday, but no follow through with a breakout. Look for a move above 47.1 to forge a flag breakout that would target a move towards the next resistance around 50.
After breaking resistance with a big surge in October, Kroger pulled back to broken resistance with a falling wedge over the last two months. Broken resistance turns into support and the decline retraced 50-62% of the prior advance. More recently, KR formed a harami on Thursday-Friday. Monday's surge on pretty good volume is the first sign that support will hold. A move below last week's low would negate this setup.
The NY Times (NYT) is showing signs of life with a high volume bounce on Monday. After surging above 7 in July, the stock has been in consolidation mode since August. There is a lot of support on either side of 8. Most recently, NYT consolidated with a tight range for six days and then broke range resistance with Monday's surge.
The NY Times (NYT) is showing signs of life with a high volume bounce on Monday. After surging above 7 in July, the stock has been in consolidation mode since August. There is a lot of support on either side of 8. Most recently, NYT consolidated with a tight range for six days and then broke range resistance with Monday's surge.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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