What do a gigantic software company, energy company and teleco have in common right now?
Not much, it seems.
All three have very different businesses, macro conditions and fundamental situations. But the one thing they all have in common is arguably the most important for investors: They're each teetering on the edge of signaling a major buy signal in June.
To figure out which stocks are about to be in play (and when you should buy them), we're turning to the charts for a technical look.
Leading things off is $185 billion software giant Oracle Corp. (ORCL) .
Oracle has exhibited some clear-cut price leadership in 2017 -- shares are more than 18% higher than they started the year. But don't worry if you've missed out on that rally in Oracle. Shares look ready to kick off a second leg higher this summer.
Oracle is currently forming an ascending triangle pattern, a bullish continuation setup that's formed by horizontal resistance up above the shares at $46, and up-trending support to the downside. As Oracle has bounced in between those two technically important price tags, shares have been getting squeezed closer and closer to our $46 price ceiling. When that $46 price level gets exceeded, we've got our buy signal in Oracle.
It's crucial to be reactionary with the Oracle trade. That's because, while buyers have clearly been in control of the price action this year, Oracle's next leg higher doesn't become a high-probability trade unless buyers are able to bid shares up materially above the $46 level that has swatted the rally lower on the last three attempts through it. Stay tuned.
Meanwhile, the energy sector has been a hard sell for investors this year. While the broad market averages have been testing new highs in 2017, most energy stocks have been doing the opposite. But, not so with shares of Paris-based oil and gas giant Total SA (TOT) .
In fact, you don't need to be much of an expert technical trader to figure out what's been going on in shares of Total lately -- instead, the price action is about as simple as it gets.
Total has been bouncing its way higher in a well-defined uptrending channel since this fall's lows. That uptrend is formed by a pair of parallel trend lines that identify the high-probability range the shares may remain; every test of the lower trend line has been an ideal place to be a buyer ahead of the ensuing bounce higher.
Now, shares are testing that trend line support level for the fifth time since November, signaling a buying opportunity on the next bounce higher. Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring Total can actually still catch a bid along that line before you put your money on shares.
Last on our list of mega-cap charts signaling buys is teleco giant Verizon Communications Inc. (VZ) . Verizon has been under pressure for most of 2017, shedding about 13% of its market value since the start of the year. But that could be about to change -- Verizon has spent the last month and change carving out a textbook example of a bottoming pattern, and shares are testing breakout territory this week.
The pattern in play for Verizon right now is an inverse head-and-shoulders setup, a bullish reversal pattern that indicates exhaustion among sellers. The pattern is identified by two swing lows that bottom out at approximately the same level (the shoulders), separated by a lower low (the head). The buy signal gets triggered on a move through Verizon's neckline at $47 -- shares are within grabbing distance of that breakout level today.
The Verizon trade gets some extra upside confirmation from the fact that a push through $47 would also break shares above the downtrend that's put this stock under pressure for most of the year. That secondary breakout signal makes a push through $47 in Verizon a buy move worth paying attention to this summer.
Oracle remained unchanged by Thursday close at $45.43.
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