Most big stock charts from the S&P 500 looked great on Thursday — nice and green. There are always exceptions, however. A rising tide doesn’t necessarily lift all boats, it seems.
On the other hand, one trader’s trash is another trader’s treasure. The willingness to buy at low prices is what made Warren Buffett rich. Maybe it can work for you, as well.
Thus, the three big stock charts for Friday will focus on the ones that printed an ugly red candle but also might present a buying opportunity. Are any of them in the all-important “buy zone?” Take a look and see!
United Technologies (UTX)
Owning United Technologies (NYSE:UTX) stock is often considered safe as it’s a component of the Dow Jones Industrial Average. Like any other stock, however, it has good days and bad days. And Thursday was a bad day. What does it mean for the first of our big stock charts, though?
- Thursday’s candlestick has an upper wick but hardly any lower wick. This implies that the bidders failed in their attempt to push the price into the green. That’s not a good sign.
- $70 is the support level to watch. But these support levels are made of wood, not concrete. The stock could conceivably crash through it at any moment.
- Despite those three big consecutive candles in March, the trend is still downwards until proven otherwise. Remember, the trend is your friend!
You can bet on a healthcare sector recovery with a long position in Cigna (NYSE:CI) stock. Thursday’s red candlestick wasn’t too encouraging, though. So, what’s the prognosis based on this big stock chart?
- We can discern a falling wedge formation in the making here. The downward angle isn’t too steep, so it’s probably not a major concern yet.
- The stock was recently rejected at $180. Bulls want to see it pierce through this level soon, and with heavy volume.
- Thursday’s candlestick is a doji candle signaling indecision among traders. Still, the bounce off of $130 was powerful. This stock could have some steam left in it. It’s in a “buy zone” while still having the potential to push up to $220.
Equifax (NYSE:EFX) stock dove hard in March, perhaps even harder than most large-caps did. Can Equifax, the third of today’s big stock charts, repair its credit with the trading community?
- The megaphone chart pattern signals broadening up-and-down price action. Those candlesticks have gotten big lately, so brace yourself for possible volatility.
- $135 provided strong support, but those days are in the rear-view mirror. Now it’s resistance, so consider taking profits at that level if the stock gets there.
- Pardon the insult, but this is the ugliest chart of today’s three big stock charts. This isn’t a buy zone — it’s a war zone. The end of March appears to be a fake-out, so don’t anticipate a breakout.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.