Some technical analysts want nothing to do with the fundamentals. Some fundamental analysts would never be caught dead looking at a chart even if there were no clients around. Because no investment approach is 100% perfect, I cannot understand why an open-minded investor would not want to use all the tools at their disposal.
TheStreet recently released a list of 19 companies that could weather a recession. While I majored in economics, minored in finance and passed the Series 86 exam, I have been away from the craft too long to venture in that direction. Instead, I have culled out the best-looking charts from this list of 19. Let's see how these two disciplines can work together.
The first name on our short list of four stocks is Chubb (CB) .
This short-term chart of CB shows improvement since July when the On-Balance-Volume turned up, indicating that buyers turned more aggressive. We can see a June-to-September double bottom, and in October prices rallied above the 50-day and 200-day moving averages. In February, the Moving Average Convergence Divergence (MACD) oscillator began improving again.
(Read more about Chubb here.)
In this longer-term chart of CB, above, we can see at the top that CB is above the 40-week moving average. The OBV line is OK on this time frame. The MACD oscillator is above the zero line and could return to the topside again.