Point & Figure Daily: Chart Patterns, Signals & Trends

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TMUS [PRICE DOUBLE TOP | INDEX RELATIVE DOUBLE TOP] | Target = $80 (await signal), Stop = $65

The T Mobile Point & Figure chart is one box away a fresh record high. A P&F Spread Quadruple Top will also confirm on that upside box fill. Double Top printed last Thursday but given overhead resistance we would not chase it just yet, it needs to trigger the Quadruple Top. The long-term uptrend is persistent, giving confidence that an upside breakout would hold.

The TMUS P&F relative chart, against the NYSE Composite, is just two boxes away from a record high. Two Double Tops are in place, trend is up, reinforcing the bullish potential on the price chart.

T Mobile point & figure spread quadruple top
TMUS P&F chart

CDNS [PRICE DOUBLE TOP | SECTOR RELATIVE DOUBLE TOP] | Target = $60, Stop = $40

The Cadence Design Point & Figure chart broke to a record high last week, simultaneously printing a P&F Spread Triple Top. We would only follow the signal if the general market holds up this week as failure to do so could easily cause the price to fall back into the 2018 congestion band ($35 to $45).

The CDNS P&F relative chart, versus the S&P 500 Information Technology sector, exhibits a ten year uptrend. New decade high this month. Therefore if the general market were to embark on a fresh bull market leg, CDNS should outperform.

Cadence Design Point & Figure Spread Triple Top
CDNS P&F chart relative

GILD [PRICE 3 STAGE REVERSAL | INDEX RELATIVE DOUBLE TOP - forecast] | Target = $88 (await further confirmation), Stop = $60

The Gilead Sciences Point & Figure price chart printed a Double Top last week, the first off a low. However, that low was a failed break of the 2017 support shelf, raising the possibility of a 3 stage reversal here. We would prefer a subsequent upside breakout signal for confidence given the market climate.

The GILD P&F relative chart, against the NYSE Composite, shows promise as a base builds. It really needs a buy signal with upside follow-through, that should be enough to target a return to the September 2017 relative high, outperformance.

Gilead Sciences P&F
GILD P&F

XYL [PRICE BULL TRAP - forecast | SECTOR RELATIVE DOUBLE BOTTOM - forecast] | Target = $60, Short Stop = $75

Last week's Xylem results met expectations but the price reaction was down, exposing vulnerability. A buy signal printed on January 30th but that looks to be a Bull Trap given the 3 box reversal down on Friday. Note the level of the 30-week moving average, now being tested, slipping under that would be a further bearish clue.

The XYL P&F relative chart, versus the S&P 500 Industrials sector, shows sideways trading over the past year. A Triple Bottom sell signal is three boxes away. We would be sellers ahead of that given the price behavior last week.

Xylem Point & Figure
XYL P&F

IP [PRICE BULL TRAP - forecast | RELATIVE DOUBLE BOTTOM] | Target = $33, Short Stop = $50

International Paper's earnings last week were a beat yet the price weakened Friday (a worst case reaction). The buy signal, a Triple Top from last Thursday, is in danger of morphing into a Bull Trap (3 box reversal down will occur at $45). Another headwind is that 30-week moving average, serving resistance last week.

The IP P&F relative chart, against the S&P 500, reflects underperformance over the past 5 years. Counter-trend move since October 2018 but that has now encountered lateral resistance (prior support).

International Paper Point & Figure
IP P&F