Stocks to Watch: 5 Big Names Telling Important Technical Stories

Strategic Insights -

The S&P 500 index may be trending sideways in 2015, but individual stocks are telling a different story. Since the start of the month, nearly two-thirds of the S&P 500 components are up, and a bigger chunk of big S&P 500 components is getting closer to breakout territory. To find these pockets of performance, we're turning to the charts. Here are five big names telling important technical stories.

Key Takeaways:

  • **Apple (AAPL)**: Currently forming a textbook ascending triangle pattern, a bullish price setup that's formed by resistance up above shares ($132.50) and uptrending support to the downside. Relative strength is in an uptrend, indicating AAPL is positioned to keep on dragging the S&P higher.
  • **American Airlines Group (AAL)**: Forming an ascending triangle breakout on a move above $55, which is a significant level due to excess supply of shares and buyers finally strong enough to absorb excess supply.
  • **Altria Group (MO)**: Showing a symmetrical triangle, or "coil," pattern, a bullish continuation setup formed by a pair of converging trend lines. The buy signal comes on a breakout to the topside of the pattern, currently right at the $52 level.
  • **American Express (AXP)**: Forming a double bottom pattern, a bullish reversal pattern that indicates a buy signal on a breakout through the peak that separates two troughs, which is the $83 resistance level.
  • **Progressive (PGR)**: Bouncing its way higher in a textbook uptrending channel since last summer, making it a good candidate for a buy on the next bounce.

Statistics:

  • The S&P 500 index has shed 44 basis points since the first of the month.
  • Nearly two-thirds of the S&P 500 components (64%) are up in May.
  • A bigger chunk of big S&P 500 components is getting closer to breakout territory this month.
  • Apple's 14% price rally has contributed about 26% of the S&P's overall move this year.
  • American Airlines has rallied more than 70% since shares bottomed back in October.
  • Altria Group's symmetrical triangle pattern is a bullish continuation setup formed by a pair of converging trend lines.

Sources:

  • Stockpickr website and articles
  • The Street website and articles
  • "5 Hated Stocks That Could Pop in May" article on The Street website
  • "5 Oil and Gas Stocks That Are Ready to Break Out" article on The Street website
  • "5 Stocks Under $10 Set to Soar" article on The Street website
  • "5 Heavily Shorted Stocks Set to Soar on Bullish Earnings" article on The Street website
  • "How to Trade the Market's Most Active Stocks" article on The Street website
  • "5 Rocket Stocks Ready for Blastoff" article on The Street website