Markets were bifurcated a bit Tuesday as the Dow took out the round 18000 handle and the S&P 500 gained, but the Nasdaq was off slightly due to some biotechs getting hit. Monday saw GILD fall precipitously and it passed the bearish baton to CELG today which managed to be comforted by its 50 day SMA. AMGN’s 50 day SMA provided some cushion too today. Recent favorite of ours AGIO which we previously wrote about lost 10% today but with our affinity for the round numbers it did find bids appear at the round par figure. Energy stocks continue to make up desperately needed lost ground with EOG which we spoke off yesterday continuing its ascent rising another 1.4% and advancing for a 6th consecutive session. DVN is making a case to be thrown into the best of breed conversation as it recently climbed back above its 50 day SMA, which is saying a lot in the battered energy patch. That 50 day aligned with the round 60 handle adding significance to that scenario. When 2 or more entry points form at the same point, which are referred to as “clusters of evidence” it adds weight to the bullish case. DVN recorded a bullish outside day on 12/16 and sent the stock on its current lift off. The stock rose 15.7% last week recording a bullish outside week and its earnings history this year was to be admired. It rose 10% on 11/5, 4.1% on 5/7 and 2.1% on 2/19. DVN fell .3% on 8/6 but did reverse to close near highs for the session.
This article requires a Chartsmarter membership. Please click here to join.