Chart of the Week: Corning
It’s time for our chart of the week. And this week we’re gonna focus in on Corning; GLW is the symbol. Let’s take a look at this chart, it’s been very strong for the past several months.
And as you can see since the late summer, early part of fall last year, the stock was trading at around the low $60s. And boy has it really run up – more than a double – more than 100% since then. But you can see here, this beautiful trend that the stock was in for the better part of September and early part of October, based for a little while over here. Came down and tested, and then broke out one more time, came down and tested one more time over here. Left a nice little gap island here, and then gapped up at the end of December, and it just has not looked back. It’s just really in a beautiful uptrend with heavy volume.
Good technical indicators too.
We are overbought, as you can see on the relative strength index. But as we know, overbought does not necessarily mean sell. So, we could take this clue as to say, look, we’ll just buy on the dips. And that is what has been happening certainly over the past three, four weeks with Corning.
Good strong volume trends as well. I mean, just lighting it up. Big institutions are coming after this stock like it’s nobody’s business. And even though we are at new highs on Corning, it’s doesn’t much matter. The buyers are still coming in.
I want to share with you a couple of other indicators as well.
Obviously MACD very, very strong over here. We’re way above all the other moving averages. The 50 day moving average here, the 200 day right over here. But we’re also above the some of the shorter term ones like the 10 and the 30 day moving average. And the 20.
But what I found interesting here is the good strength in this on-balance volume. Making higher highs and higher lows means that big institutions are still coming after this name, even as the stock has been moving up or down, even sideways.
A new indicator I want to share with you that I’ve been following lately is called the Chande Trend Meter, CTM.
What is this? The Chande Trend Indicator is basically just another momentum indicator that tells us about the strength and the direction of the trend. When the CTM is up here in the dark green area, we know the trend is strong. When it stays up there for quite a while, it just simply means that you want to buy the stock on the pullbacks.
So what is the Chande Trend Meter?
It really combines multiple timeframes and various technical indicators, such as the moving averages and the momentum, in order to provide a single comprehensive reading that is not relative to any specific index.
So there are probably about four or five other trend/directional strength indicators, much like the Chande Trend Meter, but this one is an interesting one. I like the way it’s presented and laid out for the reader of the technical analysis.
Chande Trend Meter also very strong over here. You’ll be hearing me talk a little bit more about this in the future.
So Corning, GLW, is one that you want to look at, especially if it pulls back and gives you an opportunity, maybe around the $115-125 area. It’s at $131 right now. Again, pretty overbought, but this pullback over here was shallow.
And remember something: the best trends rarely give you a chance to get in.
Check out Corning. That’s GLW. Thanks so much for watching everyone, and I’ll see you guys next time.
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