And, the Oscar, er, top StockCharts Technical Rank (SCTR) goes to XPeng, Inc. (XPEV), a Chinese smart electric vehicle (EV) manufacturer. XPEV has silently crept its way to the top of the list.

The Chinese EV industry has seen increased sales in the last month. This has made the space much more competitive for Tesla, Inc. (TSLA), which is seeing its sales in China decline. With XPeng’s new SUV slated to hit the market soon, XPEV has high hopes for 2025. I’m sure we’ll hear more about this when the company announces earnings on March 18, before the US market opens.

XPeng’s stock price has been rising steadily since August 2024, attracting the attention of several Wall Street analysts, many of whom have upped their ratings on the stock. And for good reason. The chart below compares XPEV stock to TSLA stock. Since mid-December, TSLA’s stock price (black solid line) has declined while XPEV’s has risen.

FIGURE 1. XPEV’S STOCK PRICE VS. TSLA’S STOCK PRICE. TSLA was the outperformer until mid-December, after which it started declining. In February 2025, XPEV outperformed TSLA.Chart source: StockCharts.com. For educational purposes.

Technically, XPEV has a lot going for it.

• The stock is in a steady uptrend—its one-year performance is +132.81%.
• XPEV’s SCTR score of 99.9 indicates the stock is technically strong.
• The relative strength index (RSI) has just crossed 70, indicating there’s room for XPEV’s stock price to move higher.

The daily chart shows the stock price is trading close to its 52-week high of $22.80. A breakout above this level would be positive for the stock and could pave the way for the stock price to move toward its all-time high of $74.49. Let’s switch to the weekly chart of XPEV.

The weekly chart below shows XPEV’s stock price is approaching its weekly July 2023 high, which could be the more likely resistance level XPEV would have to break through.

FIGURE 2. WEEKLY CHART OF XPEV’S STOCK PRICE. The stock price is approaching its 2023 weekly high, which could act as a resistance level. The percentage price oscillator in the lower panel indicates strong momentum in the stock’s price.Chart source: StockCharts.com. For educational purposes.

The percentage price oscillator (PPO) in the lower panel shows the stock has had strong upside momentum and could be overbought. A pullback in the stock’s price is likely to occur. If this pans out and XPEV reverses and pushes through the resistance on the weekly chart with a strong upside follow-through, it would be worth adding XPEV to your portfolio.

Keep an eye on this one. At the rate smart EVs are going, don’t be surprised to find flying cars coming to dealerships.

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.

If the essence of stock investing is to buy low and sell high, then buying not just low, but at a steep discount, optimizes your potential returns. This strategy is what’s popularly called “buying the dip.”

Aside from avoiding falling knives, buying the dip as a general approach requires three things:

1. Finding tools to identify a broad range of declining stocks.
2. Selecting only those strong stocks on the verge of rebounding.
3. Formulating a market entry setup.

This article covers the first two steps, though I’ll guide you through all three. I’m emphasizing the first two because there are numerous tools—more than I can cover in a single article—to help you identify a wide range of tradable stocks.

Finding Declining Stocks Amid a Rallying Market

As the markets recovered on Wednesday from a steep two-day decline, my first step was to check the Market Movers tool on my Dashboard to see which stocks were getting hit the hardest.

FIGURE 1. MARKET MOVERS % DOWN. Crowdstrike took the top spot for the biggest percentage loss on Wednesday morning.

Crowdstrike (CRWD) was the biggest decliner, down at the time by nearly 9%. To get a broader picture of the sector action, I switched to MarketCarpets’ tech sector view. It turns out that CRWD was the worst-hit stock amid an otherwise mostly greenish landscape.

FIGURE 2. MARKETCARPETS TECH SECTOR VIEW. This tells you that CRWD was among a few tech stocks experiencing a significant drop, while others were potentially rebounding.

If you check the StockCharts’ Symbol Summary page, you can see CRWD’s earnings and revenue history. While the company recently missed earnings estimates despite beating revenue expectations, the real driver behind the decline was weak earnings guidance.

Let’s switch to a weekly chart for a broader view of CRWD’s price action.

FIGURE 3. WEEKLY CHART OF CRWD. Despite the two sharp drops, the broader trend, which is bullish, is still intact.

CRWD’s uptrend began in 2023 but tumbled sharply in July 2024 after a faulty software update triggered a global IT outage. The stock rebounded later that month, rising sharply only to fall again in February due to disappointing fiscal guidance, insider selling, regulatory scrutiny, and broader macroeconomic concerns that pressured growth stocks.

Nevertheless, the uptrend, as volatile as it is, remains arguably intact. Using the Bollinger Bands^® to gauge the trending action, you can see that CRWD has fallen below the middle band to rebound (you see this on the daily chart) at $340. Traders found this to be a favorable spot for entry, and I’ll show you why in the next section when analyzing the price action from a closer perspective.

Meanwhile, CRWD’s StockCharts Technical Rank (SCTR) score remains above 70 (my strength indicating threshold) though falling below the ultra-bullish 90-line. What does this look like from a broader sector perspective? Relative performance shows that CRWD is outperforming the broader tech sector (represented by XLK) by over 36%, though its lead has narrowed.

Let’s switch to a daily chart to see the price action up close.

FIGURE 4. DAILY CHART OF CRWD. Accumulation appears sharp, despite the dip.

The current pullback can be effectively measured by historical support, as shown by the green highlight and a Fibonacci Retracement from the August (2024) low to the February high. I included both since traders may analyze them separately or together, especially as their proximity suggests a potential convergence.

As you can see, bullish investors jumped in at the support level of $340, though, technically, a decline to the range between $300 and $330 would still be considered a favorable dip for those looking to go long. After the initial bounce, price appears to be falling back toward $340. If it drops below the green support range, expect a deeper pullback toward the 50% and 61.8% Fib levels.

The Relative Strength Index (RSI) has declined and, although it isn’t signaling oversold conditions, if CRWD does recover soon, the indicator suggests there’s plenty of room on the upside to run (though momentum doesn’t appear to be picking up yet). 

On the volume side of things, the picture looks brighter. The Chaikin Money Flow (CMF) has declined slightly but still indicates strong buying pressure. But what pops out is the Accumulation/Distribution Line (the orange line overlaid on the price chart). While the price was falling, this ADL was rising, suggesting that buyers might have been absorbing shares sold by weaker hands.

At the Close

Although I took a deep dive into CRWD, the main takeaway here is how I used Market Movers and MarketCarpets to spot potential buy-the-dip opportunities. These tools help identify stocks experiencing sharp declines while also providing a sector-wide perspective to gauge their position among peers.

If you’re looking to widen your dip-buying strategy, test these tools under different market conditions and across various stocks and sectors. The more you use them, the better you’ll become at distinguishing between a real opportunity and a falling knife.

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.

In this exclusive StockCharts video, Joe breaks down his trading strategy using multiple timeframes. He explains how to spot key patterns on higher timeframes and use lower timeframes for confirmation. Joe provides trading examples, including bearish setups, and analyzes the general market using the daily chart to predict the next major move. Finally, he reviews viewer-requested stock symbols for additional insights. Watch now to refine your technical analysis skills!

This video was originally published on March 5, 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.

Tariffs have thrown the stock market into dizzying moves, moving up and/or down based on whatever news headlines circulate. The broader stock market indexes have all declined, although they are holding on to their 200-day simple moving average (SMA). The Nasdaq Composite ($COMPQ) fell below the average on Tuesday, but recovered on Wednesday and closed above it.

Looking at weekly performance, Real Estate, Health Care, and Consumer Staples are the top three S&P sector performers. These sectors fall under the defensive category, which suggests that investor uncertainty is still in the air. Gold and silver prices are rising, an indication of risk-off sentiment.

The Mag 7 Breakdown

Investors were flocking to the Mag 7 stocks not too long ago, but this is no longer the case. The daily chart of the Roundhill Big Tech ETF (MAGS), a basket of the Mag 7 stocks, illustrates that this group of stocks has technically broken down.

FIGURE 1. DAILY CHART OF ROUNDHILL BIG TECH ETF (MAGS). The ETF which holds all the Mag 7 stocks has broken down. However, it bounced off its 200-day simple moving average, and the relative strength index stayed above the 30 level.Chart source: StockCharts.com. For educational purposes.

Note that despite the downward trend, MAGS managed to bounce off its 200-day SMA. The relative strength index (RSI) didn’t dip below 30. Does this mean the Mag 7 could bounce back? Semiconductor stocks were up two days in a row, which may have helped MAGS stay afloat. But semiconductors are vulnerable to tariffs, so why are these stocks showing green shoots? It’s a very challenging market and I would monitor the MAGS chart daily. You wouldn’t want to miss out on a strong upside move.

Change is in the Air

President Trump’s tariffs have stirred the pot and caused shifts in investor sentiment. International stocks are gaining momentum, something we haven’t seen in a long time. The weekly chart below summarizes the performance of US stocks against the rest of the world.

FIGURE 2. US VS. THE REST OF THE WORLD. The Vanguard Total Stock Market ETF which consists of large growth US stocks is declining in performance against international stocks.Chart source: StockCharts.com. For educational purposes.

It’s also worth noting the performance of the US dollar. The US dollar plunged and is now trading below its 200-day SMA. The Canadian dollar and Mexican peso are showing signs of gaining strength against the US dollar (see chart below).

FIGURE 3. THE WEAKENING US DOLLAR. After tariffs on imports from Canada and Mexico were implemented, the US dollar started to weaken against the Canadian dollar and Mexican peso.Chart source: StockCharts.com. For educational purposes.

The Bottom Line

Now’s a good time to test your patience. It’s not exactly the type of market you want to open long positions. It’s more of a “wait and see” type of market. We’ll get the February jobs report on Friday, but how much it’ll impact the market is unclear. With investors focused on tariffs, the jobs report may be brushed off, unless it comes in vastly different than the forecast. Expect more volatility in the weeks ahead.

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.

With US tariffs on Canada, Mexico, and China having taken effect at midnight on Tuesday, US indexes extended their Monday losses, deepening concerns over the escalating trade war.

It was only a few months ago when analysts held relatively optimistic forecasts of emerging and developed market performance relative to the US. Since Trump’s re-election, Wall Street has grown more cautious due to renewed trade tensions, particularly with China, Canada, and Mexico. Nevertheless, given the sharp decline in US stocks, I thought it might be prudent to examine international markets to see how emerging and developed markets might be responding to the new Trump trade war.

Here’s a MarketCarpets view of the action early Tuesday morning:

FIGURE 1. MARKETCARPETS ONE-DAY VIEW OF INTERNATIONAL MARKETS. It’s a mixed bag with mostly negative responses.Image source: StockCharts.com. For educational purposes.

As expected, iShares MSCI Canada ETF (EWC) and iShares MSCI Mexico Capped ETF (EWW) are down while iShares MSCI China ETF (MCHI) remained resilient in the early part of the trading session.

For a broader yet short-term perspective, the five-day view shows a similar trend, but with deeper losses.

FIGURE 2. FIVE-DAY VIEW OF MARKETCARPETS INTERNATIONAL MARKETS. No clear leadership here with developed and emerging markets largely declining across the board.Image source: StockCharts.com. For educational purposes.

Developed and emerging markets are largely in the red with no clear leadership. What markets are bracing for are the tariff responses, which could significantly complicate and negatively impact global trade dynamics.

Developed vs. Emerging vs. US Markets

For those of you who might not be aware of it, the “developed” category excludes US markets. This may seem as strange as China’s inclusion in the “emerging” category where it is the second largest economy in the world. But there you have it. So, to get a clear picture of relative performance between the US markets, developed markets, and emerging markets, we’ll look at three ETFs representing each category and compare their performance using a one-year view on PerfCharts.

• iShares MSCI EAFE ETF (EFA): developed markets
• iShares MSCI Emerging Markets ETF (EEM): emerging markets
• SPDR S&P 500 ETF (SPY): broader US stock market

FIGURE 3. PERFCHARTS COMPARING RELATIVE PERFORMANCE OF DEVELOPED MARKETS, EMERGING MARKETS, AND THE S&P 500. The S&P and emerging markets are declining, but developed markets are rising and holding steady.Chart source: StockCharts.com. For educational purposes.

To get an even clearer, if not more direct comparison, take a look at a weekly ratio chart comparing EFA with EEM. From here on out, we’ll be focusing solely on international markets (omitting the S&P 500).

FIGURE 4. CHART OF EFA:EEM WITH GUPPY MULTIPLE MOVING AVERAGES. Notice how the short- and longer-term market sentiment is in an uneasy equilibrium.Chart source: StockChartsACP.com. For educational purposes.

What’s valuable about plotting a Guppy Multiple Moving Average (GMMA) is that its two color-coded ribbons are proxies for short and long-term investors. Developed markets have been trending strongly against emerging markets since the summer of 2021. But now, with the two ribbons converging, it’s telling you that short- and long-term sentiment is hovering at an uneasy equilibrium. There’s still plenty of uncertainty, even with developed markets pulling ahead.

Despite the global trade environment, might EFA or EEM present any tradable opportunities from a technical perspective? Let’s shift over to a daily chart of EFA for a closer look.

FIGURE 5. DAILY CHART OF EFA. A wide trading range with a few indications of a potential breakout.Chart source: StockCharts.com. For educational purposes.

EFA is trading near the top of a wide trading range. If you were to look at a naked chart of EFA, the price action would seem a little chaotic. This is why I decided to plot the following indicators to contextualize the price action. As complex as it may look, the indicators make the price action simpler to understand.

Here are a few key points to consider:

• EFA’s wide trading range is defined by the August low and September high.
• The latest surge is accompanied by a rise in the StockCharts Technical Rank (SCTR) score, which has now surpassed 70 (a bullish threshold I use) signaling strong technical momentum across multiple indicators and timeframes.
• The Accumulation/Distribution Line (ADL) is rising steadily and is above the current price, indicating that money flows are steadily pouring into the ETF (and by proxy, stocks included in this particular developed market index).
• I am dividing EFA’s range using Quadrant Lines. Note how the 2nd and 3rd quadrants align with the areas of concentrated trading volume, as shown by the Volume-by-Price indicator. This high-volume range can act as either support or resistance. If EFA were to eventually break out of its current range, a favorable scenario would be to see it trade above the lower limits of the third quadrant; more preferably, bouncing off the second quadrant and eventually breaking above its September high.

If this looks semi-bullish, EEM looks a bit more stuck. Here’s a daily chart.

FIGURE 6. DAILY CHART OF EEM. Support and resistance levels are plotted in an otherwise messy trading range.Chart source: StockCharts.com. For educational purposes.

EEM has sharply declined after falling below the bullish SCTR threshold of 70. After failing to retest its September high, it has retraced back toward the middle of a range that extends as far back as May of last year. The most concentrated portion of that range, as shown by the Volume-by-Price, lies between $41.50 and $43.50. While the ADL signals positive buying pressure relative to the decline in price, it’s also flattening out, indicating that money flows may be steadily declining.

Despite the volatile price action, support and resistance levels remain well-defined (and the  Volume-by-Price indicator helped confirm these levels). EEM is likely to bounce between support ($41 and $42) and resistance ($43.50 and $45.50) unless macroeconomic catalysts trigger a breakout in either direction below or above the current range. For now, patience is key—waiting for EEM to establish a clearer direction, technically or fundamentally.

Action Steps

Here are a few things you can do:

• Add EEM and EFA to your ChartLists.
• Observe how their price response to key levels mentioned above aligns with global trade environment developments.
• Monitor MarketCarpets (International ETFs) regularly to see if any patterns of consistency emerge over time.
• If a market shows consistent bullish or bearish trends, zoom in on the specific countries to determine if they align with their developed or emerging market group or are moving independently.
• Monitor the SCTR scores and analyze those charts further to see if they present investment opportunities.

At the Close

Given the heightened uncertainty surrounding global trade, developed markets have shown relative strength, while emerging markets remain in a fragile position. With tariff responses still unfolding, you should stay alert to price action while monitoring broader market sentiment for signs of directionality. For now, patience and observation remain key in navigating these volatile markets.

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.

In this video, Dave analyzes market conditions, bearish divergences, and leadership rotation in recent weeks. He examines the S&P 500 daily chart, highlighting how this week’s selloff may confirm a bearish rotation and set downside price targets using moving averages and Fibonacci retracements. To validate a potential end to the bearish phase, he shares a key technical analysis chart. What’s your S&P 500 downside objective?

This video originally premiered on March 4, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.