Charts to Watch- September 9th- September 13th
Church & Dwight (CHD)
Simple enough, the name is still making new highs and is indicating relative outperformance vs the S&P. At the lower end of the rising Channel is a good time to get in, especially with the main reason for the drop being a short seller’s short report (Spruce Point). Considering only the chart, we have seen names continue their strong uptrend even after short reports (Shopify), which shouldn’t cloud the opportunity to buy a name at the lower end of a constructive and strong uptrend.
Enerplus (ERF.TO, ERF)
Enerplus is looking very constructive with its head and shoulders bottom, indicating that there’s a chance the bottom may finally be in for this oil stock that keeps making 52-week lows. The shorter-term downtrend also looks to be broken with a break of the line trending down, which could set up for a counter- long term trade, as the longer-term chart is still in a downtrend. The surge in volume at the head part of the set up is very constructive, meaning buyers are starting to appear in a stock that has continued to disappoint (along with the whole energy index).
Medtronic is another example of a company that has outperformed the S&P, continuing to make new highs. The company broke out of a 1 year+ base and has continued to show momentum after a great earnings result. the breakout trend is still intact, and a stop idea could be at either the 50 DMA, a break of the trend up, or for longer-term holders a break of support at the previous resistance of around $100.
Quarterhill (QTRH.TO, QTRH)
Quarterhill is a smaller cap company that is breaking out of a 3 month+ bull flag, having broken out on a fairly high volume. The company has continued to ride the trend line up with the trend still intact. what else is appealing is how even with what looks like an earnings drop/large drop, the company has still continued to grind higher, showing that buyers are taking opportunities to buy-in, which bodes well for a continued move. next area of resistance looks to be around the $2 mark. It bodes well for a buy on that break, or a buy and hold until the short term uptrend breaks.