Live Nation Entertainment has been under the radar recently, and it’s easy to understand why. With so many other stocks pushing to new all-time highs, LYV is still trying to get back above its highs from earlier this year. So, even though attention has been elsewhere, we’re discussing it today because LYV is the fifth-largest holding in the State Street Communication Services ETF (XLC) . Along with Alphabet and Electronic Arts , it is also one of the only XLC components within 5% of its 52-week high, making it one of the clearer leaders within the group. As the chart shows, LYV has been tracing out a potential cup and handle pattern over the last few months. The price action can be volatile and produce whipsaws, but the general structure is clear. From a trading perspective, a breakout above the slightly upward-sloping resistance line, currently near 170, would create an upside target near 196. For risk management purposes, the stop loss would sit just below the handle, near 157. Zooming out to the weekly log chart that extends back to the middle of 2023, we can see that the most recent setup is actually part of a much larger potential bullish formation that dates back to last fall. Again, this can be viewed as another potential cup and handle pattern, one that has simply taken time to trace out. The last time we saw something this substantial on the weekly chart was the setup that developed from the middle of 2023 through the fourth quarter of 2024. That, too, resembled a larger, more drawn-out cup and handle formation. Once resistance was finally overtaken, there was immediate upside follow-through, which persisted for months and eventually led to new all-time highs. Again, as noted, LYV is a meaningful component of the XLC Communication Services ETF, which itself has been moving sideways of late. In fact, XLC remains essentially flat since last September, meaning we are now talking about roughly eight months of ultimately directionless movement. At the same time, the ETF has been attempting to complete a fairly clear bullish inverse head and shoulders pattern in recent weeks. We’ve discussed how rotation will be a big part of the market’s next phase. Thus, if/when profit taking hits large-cap tech, seeing that capital flow to communication services stocks would help the market as a whole maintain its resilience. The bottom line is this: If Live Nation can finally break above its most recent resistance line and push toward new highs, it would not only support short-term upside continuation, but also potentially complete the much larger, weekly bullish formation. In turn, that could provide a meaningful boost to the broader XLC ETF, which itself is attempting to break out to new highs. —Frank Cappelleri Founder: https://cappthesis.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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