Daily Chart Report ? Friday, July 24th, 2020

Today’s Summary
Thursday, July 23rd, 2020

Indices: US stocks closed lower in today's session. The Dow Jones Industrial Average fell 182 points or 0.68%. The S&P 500 and Nasdaq moved lower by 0.62% and 0.94%, respectively. Small-Caps underperformed with the Russell 2000 dropping 1.52%.

Sectors: 10 of the 11 sectors closed lower. Consumer Discretionary was the only sector to close positive, inching up 0.18%. Tech lagged for the second day in a row, falling 1.21%.

Commodities: Crude Oil futures gained 0.66% to $41.34 per barrel. Gold futures closed higher for the sixth day in a row, rising 0.54% to $1,900 per ounce - the highest weekly close ever.

Currencies: The US Dollar Index closed lower for the sixth day in a row, falling 0.46%.

Interest Rates: The US 10-year Treasury yield moved higher to 0.592%.

Here are the best charts, articles, and ideas being shared on the web today!

Chart of the Day

Revenge of the textbook ?? $TSM pic.twitter.com/YhEHatVXMi

— Arun S. Chopra CFA CMT? (@FusionptCapital) July 24, 2020

Today’s Chart of the Day was shared on Twitter by Arun Chopra (@FusionptCapital). It's a chart of the largest component in the Semiconductor index - Taiwan Semiconductor, $TSM. As Arun points out, this chart belongs in the textbooks, because it illustrates several classic chart patterns and technical concepts. The stock first got our attention in September of last year. At that point, price was testing resistance at $45 after forming a large base over the past year. In October, price broke out from that base and rallied 35% to a peak of $60 over the next four months. The stock then fell 25% along with the broader market earlier this year, causing price to retest former resistance around $45. Price briefly broke down, but quickly reclaimed that key $45 level. This confirmed a failed breakdown, which helped ignite a 68% rally over the past four months. In a comment to The Chart Report, Arun added; "This is really a story of relative strength. $TSM has been outperforming its peers on both a technical and fundamental basis." Like most great stories, this one has a happy ending with the stock closing at all-time highs today.

Quote of the Day