Here is your Bonus Idea with links to the full Top Ten:
Visa Inc (NYSE:V), ran higher all of 2017 and accelerated to a top at the end of January 2018. It consolidated from there in a symmetrical triangle before pushing out to the upside in April. The move stopped short of the target to 138 and began to consolidate again. Friday saw price push over the 20 day SMA, possibly starting the next move higher. A target on continuation based on a Measured Move would be a price of 149.
Momentum is building with the RSI moving higher in the bullish zone and the MACD positive and curling up towards a cross up. There is no resistance above 136.60. Support lower comes at 131 and 129.50 followed by 125. Short interest is moderate at 6.5%. The company is expected to report earnings next on July 25th. The stock pays a dividend of 0.63% and has been trading ex-dividend since May 17th.
The weekly options chain shows very big open interest at the 129 strike put. On the call side it is spread from 133 to 140. The July monthly chain shows the biggest open interest on the put side at the 125 and 130 strikes. But that is dwarfed by the open interest at the 140 strike call. The July 27 Expiry chain, the first that covers the earnings report, has the biggest open interest at the 140 call as well. Finally, the August chain shows tighter spread to open interest with a focus from 125 to 130 on the put side and 135 to 140 on the call side.
Visa, Ticker: $V
Trade Idea 1: Buy the stock on a move over 135 with a stop at 130.
Trade Idea 2: Buy the stock on a move over 135 and add a July 27 Expiry 134/130 Put Spread ($1.50) while selling the August 140 Call ($1.38) to pay for the protection.
Trade Idea 3: Buy the July 27 Expiry/August 140 Call Calendar (74 cents) and sell the July 130 Put (47 cents) to lower the cost.
Trade Idea 4: Buy the August 125/140 bull Risk Reversal (56 cents).
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the 4th of July behind, sees slow holiday trading ahead and it seems to be good for equities so far.
Elsewhere look for Gold to bounce in its downtrend while Crude Oil may pause in its uptrend. The US Dollar Index is also pausing in its uptrend while US Treasuries are breaking out to the upside. The Shanghai Composite continues to look better lower but may have a short term pause while Emerging Markets may be reversing to the upside after a several months long pullback.
Volatility looks to continue to creep lower keeping the bias higher for the equity index ETF’s SPY (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts all look good in the long term with the IWM the strongest in the short run, but the SPY and QQQ reversing higher out of support. Use this information as you prepare for the coming week and trad’em well.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.