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Michael Ashbaugh

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Jan. 23, 2018, 1:28 p.m. EST

Bull trend grinds higher, S&P 500 extends January breakout

Focus: Gold miners digest technical breakout, GDX, NEM, SYNA, ATVI, KBH, VUZI

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By Michael Ashbaugh, MarketWatch

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Similarly, the SPDR Trust S&P 500 has extended its uptrend.

Recall that the mid-month pullback was fueled by decreased volume, and punctuated by a stronger-volume extension. Constructive price action.

Summing up the backdrop

All told, the bigger-picture backdrop remains straightforward and comfortably bullish.

As it applies to the S&P 500, the index has absorbed the mid-January whipsaw — the downdraft to the 2,775 area — and reversed swiftly to another record high.

The ascending 20-day moving average, currently 2,747 (not illustrated), is rising toward support, and the S&P’s near-term uptrend is intact barring a violation.

Beyond technical levels, the primary bull trend remains broadly-based, firmly-grounded and underpinned by healthy sector rotation. All trends technically point higher pending signs of a bearish pulse.

See also: January breakout accelerates, S&P 500 clears 20-day volatility bands.

Tuesday’s Watch List

The charts below detail names that are technically well positioned. These are radar screen names — sectors or stocks poised to move in the near term. For the original comments on the stocks below, see The Technical Indicator Library.

Profiled last week, the VanEck Vectors Gold Miners ETF /zigman2/quotes/206399889/composite GDX +1.06% is acting well technically.

As illustrated, the group has recently knifed to four-month highs, rising from a successful test of the 200-day moving average. (The 200-day has marked a bull-bear inflection point. See the September low, and November range top.)

The ensuing pullback has been comparably flat, fueled by decreased volume, preserving a bullish bias.

Tactically, the former range top, circa 23.80, is followed by the 200-day moving average, currently 22.80. The group’s rally attempt is intact barring a violation.

Moving to specific names, Newmont Mining Corp. is a well positioned large-cap gold miner.

Late last month, the shares cleared trendline resistance, rising to challenge overhead matching 16-month highs.

The subsequent tight one-week range signals muted selling pressure at resistance, improving the chances of eventual follow-through. Near-term support (38.90) closely matches last week’s low, and a breakout attempt is in play barring a violation.

Looking elsewhere, Synaptics, Inc. /zigman2/quotes/208827271/composite SYNA +0.27% is a mid-cap developer of touchpads and other human-interface technologies.

As illustrated, the shares have recently gapped atop the 200-day moving average, rising after the company’s new in-display fingerprint sensor induced an analyst upgrade.

The subsequent pullback has been fueled by decreased volume, placing the shares at an attractive entry near the breakout point and 12.7% under the January peak. The post-breakout low (43.85) closely matches support, and the rally attempt is intact barring a violation.

Activision Blizzard, Inc. /zigman2/quotes/200717283/composite ATVI -1.49% is a large-cap video game developer positioned to rise.

The shares initially spiked two weeks ago, reaching all-time highs after the company’s Overwatch League debut.

The ensuing bull flag is a continuation pattern, positioning the shares to extend the January rally. First support matches the breakout point, circa 67.50, and a posture higher supports a bullish bias.

KB Home /zigman2/quotes/206220859/composite KBH -1.35% is a well positioned mid-cap homebuilder.

Technically, the shares have recently gapped to 10-year highs, rising after the company’s strong fourth-quarter results.

The ensuing pullback has been orderly, placing the shares at an attractive entry near the bottom of the gap, and 10.8% under the January peak. Consider that the ascending 20-day moving average, currently 34.00, has defined the prevailing uptrend.

Initially profiled Jan. 12, Vuzix Corp. /zigman2/quotes/205105106/composite VUZI +1.32%  has returned 8.2% and remains well positioned.

As illustrated, the shares started January with a breakout, rising after the company announced it would release augmented-reality glasses designed to support Amazon’s Alexa at the Consumer Electronics Show.

The subsequent pullback has been underpinned by the bottom of the gap, and punctuated by a 52-week closing peak.

Tactically, the prevailing range top (9.55) closely matches major resistance illustrated on the three-year chart. A near-term target projects to the 11.20 area on follow-through.

Editor’s Note: This is a free edition of The Technical Indicator, a daily MarketWatch subscriber newsletter. To get this column each market day, click here.

Still well positioned

The table below includes names recently profiled in The Technical Indicator that remain well positioned. For the original comments, see The Technical Indicator Library.

Company Symbol Date Profiled
Applied Materials, Inc. AMAT Jan. 22
Nike, Inc. NKE Jan. 22
Guess, Inc. GES Jan. 22
Fortinet, Inc. FTNT Jan 19
Foot Locker, Inc. FL Jan 19
Ciena Corp. CIEN Jan. 18
SS&C Technologies Holdings,Inc. SSNC Jan. 18
Biogen, Inc. BIIB Jan. 18
VanEck Vectors Gold Miners ETF GDX Jan. 17
Analog Devices, Inc. ADI Jan. 17
Insulet Corp. PODD Jan. 17
China Mobile Limited CHL Jan. 17
Blackberry Limited BB Jan. 16
Maxim Integrated Products, Inc. MXIM Jan. 16
Macy’s, Inc. M Jan. 16
SPDR S&P Oil & Exploration and Production ETF XOP Jan. 12
Vuzix Corp. VUZI Jan. 12
Delta Air Lines, Inc. DAL Jan. 12
American Airlines Group, Inc. AAL Jan. 11
Honeywell International, Inc. HON Jan. 11
Arrowhead Pharmaceuticals Corp. ARWR Jan. 11
Amgen, Inc. AMGN Jan. 10
Vericel Corp. VCEL Jan. 10
Ulta Beauty, Inc. ULTA Jan. 10
Cheetah Mobile, Inc. CMCM Jan. 9
Alphabet, Inc. GOOGL Jan. 8
Sina Corp. SINA Jan. 8
KLA-Tencor Corp. KLAC Jan. 5
PVH Corp. PVH Jan. 5
General Motors Co. GM Jan. 5
Apache Corp. APA Jan. 4
International Paper Co. IP Jan. 3
Sarepta Therapeutics, Inc. SRPT Jan. 3
U.S. Silica Holdings, Inc. SLCA Jan. 3
Schlumberger Limited SLB Jan. 3
VanEck Vectors Oil Services ETF OIH Jan. 2
SPDR Gold Trust GLD Jan. 2
Vale S.A. VALE Dec. 21
Pioneer Natural Resources Co. PXD Dec. 20
Nucor Corp. NUE Dec. 20
Zions Bancorp ZION Dec. 20
BB&T Corp. BBT Dec. 19
Ubiquiti Networks, Inc. UBNT Dec. 19
McDonald’s Corp. MCD Dec. 18
SPDR S&P Aerospace & Defense ETF XAR Dec. 18
Century Aluminum Co. CENX Dec. 18
Prosperity Bancshares, Inc. PB Dec. 18
Target Corp. TGT Dec.15
iRobot Corp. IRBT Dec.15
GlycoMimetics, Inc. GLYC Dec.15
SPDR S&P Metals & Mining ETF XME Dec. 14
Dunkin’ Brands Group, Inc. DNKN Dec. 14
JD.com, Inc. JD Dec. 14
Seagate Technology STX Dec. 13
TJX Companies, Inc. TJX Dec. 13
Consumer Staples Select Sector SPDR XLP Dec. 12
Nordstrom, Inc. JWN Dec. 12
F5 Networks, Inc. FFIV Dec. 11
Best Buy Co. BBY Dec. 11
Lowe’s Companies, Inc. LOW Dec. 11
PNC Financial Services Group, Inc. PNC Dec. 11
Bank of America Corp. BAC Dec. 8
Verizon Communications, Inc. VZ Dec. 7
Regions Financial Corp. RF Dec. 7
KeyCorp KEY Dec. 6
Kohl’s Corp. KSS Dec. 6
Norfolk Southern Corp. NSC Dec. 4
Medtronic plc MDT Dec. 4
East West Bancorp, Inc. EWBC Dec. 4
Kulicke and Soffa Industries, Inc. KLIC Dec. 1
iShares Transportation Average ETF IYT Nov. 30
SPDR S&P Regional Banking ETF KRE Nov. 29
Copa Holdings, S.A. CPA Nov. 29
International Game Technology IGT Nov. 29
Loews Corp. L Nov. 29
Nuance Communications, Inc. NUAN Nov. 28
Advance Auto Parts, Inc. AAP Nov. 27
AutoNation, Inc. AN Nov. 27
Walt Disney Co. DIS Nov. 22
FleetCor Technologies, Inc. FLT Nov. 21
SPDR S&P Retail ETF XRT Nov. 20
Abercrombie & Fitch Co. ANF Nov. 20
American Eagle Outfitters, Inc. AEO Nov. 20
MSCI, Inc. MSCI Nov. 20
Verisk Analytics, Inc. VRSK Nov. 20
Consumer Discretionary SPDR XLY Nov. 14
Motorola Solutions, Inc. MSI Nov. 14
Skechers U.S.A., Inc. SKX Nov. 13
Polaris Industries, Inc. PII Nov. 13
Tractor Supply Co. TSCO Nov. 13
Splunk, Inc. SPLK Nov. 9
Aimmune Therapeutics, Inc. AIMT Nov. 9
Teradata Corp. TDC Nov. 7
Corning, Inc. GLW Nov. 7
InterXion Holding, N.V. INXN Nov. 6
Yum Brands, Inc. YUM Nov. 6
First Solar, Inc. FSLR Nov. 3
Twitter, Inc. TWTR Nov. 1
Melco Resorts & Entertainment Limited MLCO Nov. 1
Akamai Technologies, Inc. AKAM Oct. 30
Cisco Systems, Inc. CSCO Oct. 25
Mosaic Co. MOS Oct. 25
Builders FirstSource, Inc. BLDR Oct. 25
Marvell Technology Group, Ltd. MRVL Oct. 24
Lululemon Athletica, Inc. LULU Oct. 24
PPG Industries, Inc. PPG Oct. 23
SPDR S&P Homebuilders ETF XHB Oct. 20
Johnson & Johnson JNJ Oct. 20
Steel Dynamics, Inc. STLD Oct. 20
Michael Kors Holdings Limited KORS Oct. 18
Marathon Oil Corp. MRO Oct. 17
SM Energy Co. SM Oct. 16
Nutanix, Inc. NTNX Oct. 16
Dollar General DG Oct. 16
Paychex, Inc. PAYX Oct. 13
Union Pacific Corp. UNP Oct. 12
International Business Machines Corp. IBM Oct. 11
3M Co. MMM Oct. 5
HubSpot, Inc. HUBS Oct. 4
SolarEdge Technologies, Inc. SEDG Oct. 4
Citrix Systems, Inc. CTXS Oct. 3
XPO Logistics, Inc. XPO Oct. 2
EOG Resources, Inc. EOG Oct. 2
Neurocrine Biosciences, Inc. NBIX Oct. 2
FedEx Corp. FDX Sept. 29
YY, Inc. YY Sept. 29
Nvidia Corp. NVDA Sept. 27
Financial Select Sector SPDR XLF Sept. 26
Texas Instruments, Inc. TXN Sept. 20
Continential Resources, Inc. CLR Sept. 18
Silicon Laboratories, Inc. SLAB Sep. 15
Devon Energy Corp. DVN Sep. 15
Energy Select Sector SPDR XLE Sept. 14
Cimarex Energy Co. XEC Sept. 14
Urban Outfitters, Inc. URBN Sept. 14
Valero Energy Corp. VLO Sept. 11
Home Depot, Inc. HD Sept. 7
Ross Stores, Inc. ROST Sept. 7
Wal-Mart Stores, Inc. WMT Sept. 6
Tower Semiconductor, Ltd. TSEM Aug. 24
Southern Copper Corp. SCCO Aug. 17
Cadence Design Systems, Inc. CDNS Aug. 4
Abbott Laboratories ABT Aug. 3
D.R. Horton, Inc. DHI July 18
Bottomline Technologies, Inc. EPAY July 13
Toyota Motor Corp. TM July 13
PulteGroup, Inc. PHM July 11
Scientific Games Corp. SGMS June 7
iShares China Large-Cap ETF FXI June 6
Health Care Select Sector SPDR XLV June 5
Sangamo Therapeutics, Inc. SGMO June 5
Monster Beverage Corp. MNST May 24
iShares MSCI Japan ETF EWJ May 12
Weibo Corp. WB May 12
GrubHub, Inc. GRUB May 4
Caterpillar, Inc. CAT Apr. 28
UnitedHealth Group, Inc. UNH Mar. 31
iShares MSCI Hong Kong ETF EWH Mar. 24
Universal Display Corp. OLED Mar. 21
iShares MSCI Asia ex Japan ETF AAXJ Mar. 21
Square, Inc. SQ Mar. 3
Paycom Software, Inc. PAYC Feb. 24
Facebook, Inc. FB Feb. 23
SPDR S&P Biotech ETF XBI Feb. 15
CBOE Holdings, Inc. CBOE Feb. 8
Boeing Co. BA Feb. 7
iShares Europe ETF IEV Jan. 26
Amazon.com AMZN Jan. 13
iShares MSCI Emerging Markets ETF EEM Jan. 11
Alphabet, Inc. GOOGL Jan. 9
Alibaba Group Holding Limited BABA Jan. 5
Apple, Inc. AAPL Dec. 9
Technology Select Sector SPDR XLK Oct. 25
Netflix, Inc. NFLX Oct. 4
Microsoft Corp. MSFT Aug. 5
PowerShares QQQ ETF QQQ July 19
Industrial Select Sector SPDR XLI July 15
Materials Select Sector SPDR XLB July 15
VanEck Vectors Semiconductor ETF SMH June 23
/zigman2/quotes/206399889/composite
US : U.S.: NYSE Arca
$ 33.50
+0.35 +1.06%
Volume: 13.56M
July 26, 2021 4:00p
loading...
/zigman2/quotes/208827271/composite
US : U.S.: Nasdaq
$ 150.48
+0.40 +0.27%
Volume: 338,687
July 26, 2021 4:00p
P/E Ratio
36.00
Dividend Yield
N/A
Market Cap
$5.28 billion
Rev. per Employee
$961,716
loading...
/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 90.14
-1.36 -1.49%
Volume: 4.59M
July 26, 2021 4:00p
P/E Ratio
30.41
Dividend Yield
0.52%
Market Cap
$71.10 billion
Rev. per Employee
$851,474
loading...
/zigman2/quotes/206220859/composite
US : U.S.: NYSE
$ 40.92
-0.56 -1.35%
Volume: 1.53M
July 26, 2021 4:00p
P/E Ratio
9.17
Dividend Yield
1.47%
Market Cap
$3.82 billion
Rev. per Employee
$2.36M
loading...
/zigman2/quotes/205105106/composite
US : U.S.: Nasdaq
$ 14.56
+0.19 +1.32%
Volume: 1.58M
July 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$906.36 million
Rev. per Employee
$119,397
loading...

Michael Ashbaugh writes technical analysis for MarketWatch and is editor of MarketWatch's "The Technical Indicator" newsletter.

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