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Three Charts Showing Proper Moving Average Alignment

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I’m a huge fan of using platforms like StockCharts to help make my investment process more efficient and more effective.  The StockCharts scan engine helps me identify stocks that are demonstrating constructive technical configuration based on the shape and relationship of multiple moving averages.

Today I’ll share with you one of my favorite scans, called “Moving Averages in Correct Order”, and walk through three charts that highlight the benefits of identifying charts in primary uptrend phases.

Primary Uptrends Can Be Defined By Moving Averages

This scan, which StockCharts members can access in the Sample Scan Library, basically looks for three criteria to be met for any chart:

  1. 20-day EMA > 50-day SMA
  2. 50-day SMA > 100-day SMA
  3. 100-day SMA > 200-day SMA

The general approach here is to find charts where the short-term moving averages are above their longer-term counterparts.  By making multiple comparisons, we can ensure a more consistent uptrend phase based on the recent price action.  

Let’s review two charts that I feel are representative of the stocks that will tend to come up using this scanning approach.

You’ll Probably Find Two Types of Charts in the Results

The most common result will be a chart that is in a long-term primary uptrend, making consistently higher highs and higher lows.  Netflix (NFLX) is a great example of this sort of “long and strong” price action.

The four moving averages have remained in the proper order as described above for most of the last 12 months.  After NFLX pulled back to its April low, a bounce back above the March swing high moved the 21-day exponential moving average back above the 50-day simple moving average.  From that breakout point, the stock has continued to push to new all-time highs into early June.

One thing I love about this scan is it helps me confirm which stocks are in persistent uptrends, because those are the types of charts that I generally want to be following as they trend higher.  But sometimes, a pullback chart will come up in the scan as well.  Here’s TJX, which has recently pulled back after achieving a new all-time high in May.

We can see that the moving averages returned to the proper order in early April after rotating higher off a major low in mid-March.  From that point, TJX had a false breakout in mid-April before finally completing the move to a new high in early May.  TJX subsequently gapped lower after an earnings miss, and the stock has now pulled back to an ascending 50-day moving average.

The TJX chart reminds me of three benefits of following moving averages over time.  First, we can look at the slope of an individual moving average to evaluate the shape of the trend on a specific time frame.  Second, we can compare multiple moving averages to validate the trend on multiple time frames.  Finally, we can use moving averages as potential support and resistance levels in the event of a pullback.

With TJX testing an ascending 50-day moving average this week, I’m inclined to treat this chart as “innocent until proven guilty” as long as it remains above this key trend barometer.  But if and when the 50-day moving average is violated, and if the moving averages are no longer in the proper order, then I would need to reevaluate a long position.

Why the Transition to Proper Order is So Important

This final example shows how the transition between moving average configurations can prove so valuable in understanding trend transitions.  Here’s a daily chart of VeriSign (VRSN) showing how the relationship between the moving averages can help us better label the different trend phases.

On the left third of the chart, we can see the moving averages mostly in a bearish order, confirming a distribution phase for the stock.  Then in June 2024, the moving averages change to where there’s no real clean definition of the trend.  This represents a consolidation phase, where buyers and sellers are essentially in agreement.

Finally, we can see that when the moving averages finally achieve a bullish configuration, VRSN is now in an accumulation phase of higher highs and higher lows.  And as long as those moving averages remain in the proper order, the uptrend phase is confirmed.

The goal with this moving average scan is to help us identify charts that are just rotating into the accumulation phase.  It’s also designed to encourage us to stick with winning trends as long as the price action confirms the uptrend.  And if and when the moving average configuration changes, then our approach should probably change as well!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

marketmisbehavior.com

https://www.youtube.com/c/MarketMisbehavior

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.


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In Investing

Should You Invest in Silver Bullion?

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Investing in silver bullion has pros and cons, and what’s right for one investor may not work for another.

Interest in the silver market tends to flourish whenever the silver price increases, with investors beginning to wonder if silver is a good investment and it is the right time to add physical silver to their investment portfolios.

While silver can be volatile, the precious metal is also seen as a safe-haven asset, similar to its sister metal gold. Safe-haven investments can offer protection in times of uncertainty, and with tensions running high, they could be a good choice for those looking to preserve their wealth in difficult times.

With those factors in mind, let’s look at the pros and cons of buying silver bullion.

What are the pros of investing in silver bullion?

Silver can offer protection

Silver bullion is often considered a good safe-haven asset. As mentioned, investors often flock to precious metals in times of turmoil, politically and economically. For example, physical silver and gold have both performed strongly in recent years against a background of geopolitical instability and high inflation.

Silver bullion is a tangible asset

While cash, mining stocks, bonds and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. A troy ounce of silver bullion, on the other hand, is a finite tangible asset. That means that, although it is vulnerable to market fluctuations like other commodities, physical silver isn’t likely to completely crash because of its inherent and real value. Market participants can buy bullion in different forms, such as silver coins or silver jewelry, or they can buy silver bullion bars.

Silver’s cheaper and more flexible than gold

Compared to gold bullion, silver is significantly cheaper, which makes it more accessible for investors looking for an affordable entrance to the precious metals market. This can make it easier for investors to build up a portfolio over time.

Another benefit is that investors who need to convert their precious metals to currency will have an easier time selling a portion of their silver portfolio than those looking to sell part of their gold. Just as a US$100 bill can be a challenge to break at the store, divvying up an ounce of gold bullion can be a challenge. As a result, silver bullion is more practical and versatile, particularly for everyday investors who need flexibility in their investments.

Silver offers higher returns than gold

Silver tends to move in tandem with gold: when the price of gold rises, so too does the price of silver. Because the white metal is currently worth around 1/100th the price of gold, buying silver bullion is affordable and stands to see a much bigger percentage gain if the silver price goes up. In fact, silver has outperformed the gold price in bull markets. It’s possible for an investor to hedge their bets with silver bullion in their investment portfolio.

History is on silver’s side

Silver and gold have been used as legal tender for thousands of years, and that lineage lends them a sense of stability. Many buyers find comfort in knowing that silver has been recognized for its value throughout a great deal of mankind’s history, and so there’s an expectation that it will endure while a fiat currency may fall to the wayside. When individuals invest in physical silver, there is a reassurance that the metal has value that will continue to persist. Additionally, its increasing use as an industrial metal in the energy transition has improved the metals fundamentals even further.

What are the cons of investing in silver bullion?

Danger of theft

Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft. And of course, the more physical assets, including silver jewelry, that reside within your home, the more at risk you are for losing significantly if a burglary takes place. It’s possible to secure your assets from looting by using a safety deposit box in a bank or a safe box in your home, but this will incur additional costs.

Weaker return on investment

Silver may not perform as well as other investments, such as real estate or even other metals. Mining stocks, especially silver stocks that pay dividends, may also be a better option than silver bullion for some investors. Royalty and streaming companies are another option for those interested in investing in silver, as are exchange-traded funds and silver futures.

High silver demand leads to higher premiums

When investors try to buy any bullion product, such as an American silver ounce coin known as a silver eagle, they quickly find out that the physical silver price is generally higher than the silver spot price due to premiums used by sellers. What’s more, if demand is high, premiums can go up fast, making the purchase of physical silver bullion more expensive and a less attractive investment.

Bullion lacks quick liquidity

Silver bullion coins are not legal tender, meaning they can’t be used for every day purchases. Since the metal is usually used as an investment, this isn’t often an issue. However, it does mean that if silver needs to be sold in a hurry to cover expenses, investors will need to find a buyer. If you can’t access a bullion dealer and are in a jam, pawn shops and jewelers are an option, but they won’t necessarily pay well.

How to add physical silver to your portfolio?

How to buy silver digitally?

Larisa Sprott: Gold, Silver Early in Cycle, Smart Money Buying Now

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Investing

Justin Huhn: Uranium Game On — Supply “Mirage,” De-risked Demand, Next Price Move

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Justin Huhn, editor and founder of Uranium Insider, talks uranium supply, demand and prices.

He emphasized that it’s still ‘very early’ in the cycle and that at this point no further catalysts are needed.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Economy

Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

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Use of low-cost e-commerce giants Temu and Shein has slowed significantly in the key U.S. market amid President Donald Trump’s tariffs on Chinese imports and the closure of the de minimis loophole, new data shows.

Temu’s U.S. daily active users (DAUs) dropped 52% in May versus March, before Trump’s tariffs were announced, while those at rival Shein were down 25%, according to data shared with CNBC by market intelligence firm Sensor Tower.

DAUs is a measure of the number of people who visit or interact with a platform every 24 hours. Monthly active users (MAUs), a measure of user engagement over a 30-day period, was also down at Temu (30%) and Shein (12%) in May versus March.

The declines were also reflected in both platforms’ Apple App Store rankings. Temu averaged a rank of 132 in May 2025, down from an average top 3 ranking a year ago, while Shein averaged a rank of 60 last month versus a top 10 ranking the year prior, the data showed.

Neither Temu nor Shein immediately responded to CNBC’s request for comment.

The user drop off comes as both Temu and Shein have pulled back on U.S. advertising spend over recent months since the Trump administration’s tariff announcements.

Trump in April announced sweeping tariffs on Chinese imports, including the end of the “de minimis” tariff exemption on May 2, which allowed companies to ship low-cost goods worth less than $800 to the U.S. tariff-free.

In May, Temu’s U.S. ad spend fell 95% year-on-year while Shein’s was down 70%.

“Temu and Shein’s decline in US ad spend was also noticeable in April, as spend decreased by 40% and 65% YoY, respectively,” Seema Shah, vice president of research and insights at Sensor Tower, said in emailed comments to CNBC.

Both Temu and Shein also altered their logistics models in the wake of tariffs, shifting away from a drop shipping model, which allowed them to send items directly from Chinese suppliers to U.S. consumers, and instead, particularly in Temu’s case, building up a network of U.S. warehouses.

Rui Ma, founder and analyst at Tech Buzz China, said such moves were also likely to have impacted the companies’ ad spend strategy and customer acquisition patterns.

“All these additional costs and regulatory hurdles are clearly hurting Chinese platforms’ U.S. growth prospects,” she wrote in emailed comments.

Tech Buzz China research from March showed that a 50% tariff would be the point at which Temu would lose most of its price advantages and find it difficult to operate. The tariff on former de minimis imports currently stands at 54%, having been lowered from 120% amid a 90-day tariff truce between the U.S. and China.

Last week, Temu’s parent company PDD Holdings reported first-quarter earnings below estimates and pointed to tariffs as a significant pressure on sellers.

Temu’s popularity has nevertheless picked up outside the U.S., with non-U.S. users rising to account for 90% of the platform’s 405 million global MAUs in the second quarter, according to HSBC.

Writing in a note last week, HSBC analysts said that was “supported by growth in Europe, Latin America, and South America.” They added that the swiftest of that growth occurred in “less affluent markets.”

“Many (Chinese platforms) are now actively redirecting their efforts toward other markets such as Europe,” Ma said.

This post appeared first on NBC NEWS

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In Latest News

New Zealand Parliament votes for record suspensions of 3 lawmakers who performed Māori haka protest

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New Zealand legislators voted Thursday to enact record suspensions from Parliament for three lawmakers who performed a Māori haka to protest a proposed law.

Hana-Rāwhiti Maipi-Clarke received a seven-day ban and the leaders of her political party, Debbie Ngarewa-Packer and Rawiri Waititi, were barred for 21 days. Three days had been the longest ban for a lawmaker from New Zealand’s Parliament before.

The lawmakers from Te Pāti Māori, the Māori Party, performed the haka, a chanting dance of challenge, last November to oppose a widely unpopular bill, now defeated, that they said would reverse Indigenous rights.

But the protest drew global headlines and provoked months of fraught debate among lawmakers about what the consequences for the lawmakers’ actions should be and whether New Zealand’s Parliament welcomed or valued Māori culture — or felt threatened by it.

A committee of the lawmakers’ peers in April recommended the lengthy punishments in a report that said the lawmakers were not being punished for the haka itself, but for striding across the floor of the debating chamber towards their opponents while they did it. Maipi-Clarke Thursday rejected that, citing other instances where legislators have left their seats and approached their opponents without sanction.

It was expected that the suspensions would be approved, because government parties have more seats in Parliament than the opposition and had the necessary votes to affirm them. But the punishment was so severe that Parliament Speaker Gerry Brownlee in April ordered a free-ranging debate among lawmakers and urged them to attempt to reach a consensus on what repercussions were appropriate.

No such accord was reached Thursday. During hours of at times emotional speeches, government lawmakers rejected opposition proposals for lighter sanctions.

There were suggestions that opposition lawmakers might extend the debate for days or even longer through filibuster-style speeches, but with the outcome already certain and no one’s mind changed, all lawmakers agreed that the debate should end.

This post appeared first on cnn.com

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In Latest News

Japan’s annual births fall to record low as population emergency deepens

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The number of newborns in Japan is decreasing faster than projected, with the number of annual births falling to another record low last year, according to government data released Wednesday.

The health ministry said 686,061 babies were born in Japan in 2024, a drop of 5.7% on the previous year and the first time the number of newborns fell below 700,000 since records began in 1899. It’s the 16th straight year of decline.

It’s about one-quarter of the peak of 2.7 million births in 1949 during the postwar baby boom.

The data in a country of rapidly aging and shrinking population adds to concern about the sustainability of the economy and national security at a time it seeks to increase defense spending.

Prime Minister Shigeru Ishiba has described the situation as “a silent emergency” and has promised to promote more flexible working environment and other measures that would help married couples to balance work and parenting, especially in rural areas where family values tend to be more conservative and harder on women.

Japan is one of a number of east Asian countries grappling with falling birth rates and an aging population. South Korea and China have fought for years to encourage families to have more children. Also on Wednesday, Vietnam scrapped decades-old laws limiting families to two children in an effort to stem falling birth rates.

The health ministry’s latest data showed that Japan’s fertility rate – the average number of babies a woman is expected to have in her lifetime – also fell to a new low of 1.15 in 2024, from 1.2 a year earlier. The number of marriages was slightly up, to 485,063 couples, but the downtrend since the 1970s remains unchanged.

Experts say the government’s measures have not addressed a growing number of young people reluctant to marry, largely focusing on already married couples.

The younger generation are increasingly reluctant to marry or have children due to bleak job prospects, a high cost of living and a gender-biased corporate culture that adds extra burdens for women and working mothers, experts say.

A growing number of women also cite pressure to take their husband’s surname as a reason for their reluctance to marry. Under Japanese law, couples must choose a single surname to marry.

Japan’s population of about 124 million people is projected to fall to 87 million by 2070, with 40% of the population over 65.

This post appeared first on cnn.com

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In Stock

Why ADX Can Mislead You — And How to Avoid It

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In this video, Joe walks through a comprehensive lesson on using the ADX (Average Directional Index) as part of a technical analysis strategy. Joe explains the key components of the ADX indicator, how to interpret DI+ and DI- lines, and how to identify strong or weak trends in the market. He also covers how to combine ADX with price action and volatility to improve timing and trading decisions.

In addition, Joe analyzes SPY, QQQ, IWM, and individual stocks like AMPX, UNH, and more, focusing on trend conditions, MACD, price structure, and key moving averages.

The video premiered on June 4, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.


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In Stock

S&P 500 on the Verge of 6,000: What’s at Stake?

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A lot has happened in the stock market since Liberation Day, keeping us on our toes. Volatility has declined significantly, stocks have bounced back from their April 7 low, and the economy has remained resilient.

If you’re still feeling uncertain, though, you’re not alone. The stock market’s in a bit of a “wait and see” mode, going through a period of consolidation as it figures out its next move. 

The S&P 500 ($SPX) is hesitating to hit 6000 despite reclaiming its 200-day simple moving average (SMA). This indecision can leave investors feeling stuck in “no man’s land.” And it’s not just the S&P 500, either; most major indexes are in a similar scenario, except for small caps, which have been left behind. This could be because the market has priced in a delay in interest rate cut expectations.

Tech Is Taking the Lead

If you drill down into the major indexes, there is some action you shouldn’t ignore. Tech stocks have started to take the lead again, although momentum has been lacking. Over the past month, the Technology sector has been up over 4%.

FIGURE 1. S&P SECTOR ETF PERFORMANCE OVER THE LAST 30 DAYS. Technology is the clear leader with a gain of over 4%.Image source: StockCharts.com. For educational purposes. It’s encouraging to see tech stocks regain their leadership position. Tech is a major force behind the S&P 500 and Nasdaq Composite ($COMPQ). The daily chart of the Technology Select Sector SPDR Fund (XLK) shows the ETF has been trying to break above a consolidation range it has been stuck in since mid-May.

FIGURE 2. DAILY CHART OF XLK. Although the ETF has barely broken above its consolidation range, we need to see greater momentum to confirm a follow through to the upside.Chart source: StockCharts.com. For educational purposes.Nothing is standing in the way of XLK reaching its all-time high, but the momentum isn’t quite there yet. The 14-period relative strength index (RSI) is below 70 and looks to be stalling, pretty much in line with the overall stock market’s price action.

So, what’s the market waiting for? Maybe a catalyst, like Friday’s non-farm payrolls report. This week’s JOLTS, ADP, and ISM Services data didn’t move the needle much, but the NFP report could be the game changer.

S&P 500 Technical Forecast

Where could the S&P 500 go from here? Let’s dive into the weekly chart.

FIGURE 3. WEEKLY CHART OF THE S&P 500. The index is spitting distance to its all-time high. A break above the November high would clear the path to new highs.Chart source: StockCharts.com. For educational purposes.

The S&P 500 broke above its 40-week SMA on the week of May 12 and has held above it. However, it has been in a consolidation for the last month, similar to that of XLK.

The S&P 500 is approaching its November high of 6017. A break above it could push it toward new highs. On the flip side, if it slides below the 40-week SMA, it would be a cause for concern and could mean the May 12 gap-up could get filled. Keep an eye on the 5688 level. If the S&P 500 pulls back close to that level and turns around, it would be a healthy correction — an opportunity to buy the dip. A further downside move would mean exercising patience or unloading some of your positions.

What’s Going On With Gold and Bonds?

While stocks are grinding sideways, gold prices are rising, and bond prices are showing green shoots. This price action tells us that investors could be bracing for slower growth ahead. It’s not something to panic about — just something to watch.

You can get a quick look at what gold, bonds, and all the major indexes are doing by checking out the StockCharts Market Summary page and Your Dashboard.

So, what should you do?

Hold, add, or fold? That’s the big question. The market needs time to digest a lot, from economic data to geopolitical risks and policy headlines. Keep checking in and monitor the sectors, observe index performance, and note how other areas of the market, such as precious metals and bonds, are reacting.

 Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.


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In Investing

Victoria Gold-Silver Exploration Update

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Infinity Lithium Corporation Limited (‘Infinity’, or ‘the Company’) is pleased to announce that it has engaged a drilling contractor and has committed to testing the exciting CST (Comstock) gold-silver prospect (the CST Prospect) within the Cobungra Project (EL 7073) in July. Cobungra is located within the Lachlan Fold Belt in NE Victoria and was recently acquired by Infinity from Highland Resources Limited (ASX announcement 31 March 2025) as part of the Company’s transition to a focus on precious metals in Australia.

KEY POINTS

  • Drilling contractor contracted, drilling set to commence early July.
  • Exploration will test high priority CST Prospect (gold-silver) at Cobungra.
  • Undrilled geophysical target with coincident high-grade gold rock chip samples.
  • Gold focus in Australia the immediate priority to enhance company value going forward.

Infinity has moved quickly to commit to drill testing its recently acquired gold-silver-copper Projects and expand its holding of high-grade gold exploration ground within the Victorian portion of the rich Lachlan Fold Belt (Figure 1).

CST Prospect, Cobungra Project

The CST Prospect is located along strike (approx. 2,000m) from the previously drilled (5 holes) Forsyth Prospect also located within EL7073 which returned high-grade gold and silver intercepts including 5.35m @ 4.7g/t gold (Au), 334 g/t silver (ag) from 143m (ASX release dated 31 March 2025). Gold and silver mineralisation at both the Forsyth and CST Prospects is interpreted to be related to the Ensay Shear which is a laterally continuous structure running NW-SE through the tenement. Along strike, approx. 5km to the SE, is the proximal to the +300,000 oz Au Cassilis gold deposit (319,500 oz Au deposit JORC 2012, ABA Resources https://www.abaresources.com.au/portfolio.php). The Company believes that the strike of the Ensay Shear is a prospective exploration horizon.

The CST Prospect (Comstock) is an obvious and exciting initial drilling priority as Infinity targets precious metals in Australia. The CST Prospect presents an excellent drill target based on some historic gold-silver workings with a programme of rock chip sampling and geophysical surveying (I.P) 2013-2014 identifying coincident anomalies. These will be drilled in a small, first-pass drill campaign (approximately 6 holes for 800m). The CST Prospect has never been drilled and this is a first pass drilling campaign designed to identify further priority targets and areas of geological interest.

There are at least seven quartz vein-type gold (silver) lodes distributed in the CST Prospect Mineral Occurrence, with traced length of 20m~80m and width of 0.1m~2.0m. These lodes are nearly parallel, strike NNE and dip to SEE at a dip angle of 65°~80° (Figure 2). These lodes are interpreted to be ‘tension gashes’ running oblique within the dominant NW-SE striking Ensay Shear.

Refer to ASX release 31 March 2025 “Infinity Acquires Gold Projects”. Infinity is not aware of any new information that materially affects the information included in this announcement

Click here for the full ASX Release

This post appeared first on investingnews.com

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