Charter Communications (CHTR) extended its multi-year uptrend in late January with a heavy volume gap higher. CHTR spent the next several weeks consolidating and unwinding very overbought conditions. But the stock began to resume its prior strength after its RSI touched the 40s (black arrow below) and its MACD hit centerline support. Check out the chart:
CHTR looks solid in this potential bullish cup with handle continuation pattern. It simply needs a handle to form, preferably on lighter volume down to test its rising 20 day EMA. CHTR has been a very solid relative performer vs. the benchmark S&P 500. Given the bullish pattern in play, I'd expect to see that strong relative performance continue.
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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