5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
American Express (NYSE:AXP)
American Express, $AXP, started higher in October, reaching a peak at the beginning of March. It pulled back from there to support and bounced, rising to near the prior high before a second pullback. The price action since January has been a broad consolidation and Friday saw it come to prior resistance mid-way through it. The RSI is rising and the MACD crossed up, both supporting more upside. Look for a push through resistance to participate higher…..
Cigna (NYSE:CI)
Cigna, $CI, made a quick move to the upside after the election and settled in to a brief consolidation in December. It then embarked on a slower grind higher that made a top in early May. It pulled back to the 20 day SMA from there and is now back at the May high. The RSI is rising and bullish while the MACD is crossing up. Look for a push through resistance to participate higher…..
Clorox Company (NYSE:CLX)
Clorox, $CLX, moved higher from a double bottom in December, meeting resistance at the prior high in March. It pulled back from there, finding support at the 100 day SMA. It ended last week back at the April high. It has a rising RSI in the bullish zone and a MACD that is crossed up and rising. Look for a push over resistance to participate to the upside…..
Kraft Heinz Co (NASDAQ:KHC)
Kraft Heinz, $KHC, also rose out of a double bottom in December, topping in February. Since then it has mainly moved sideways, with a pullback to the 200 day SMA quickly reversing. Now it is back at the top of consolidation with a RSI that is bullish and rising and a MACD that is moving up. Look for continuation to participate higher…..
Old Dominion Freight Line Inc (NASDAQ:ODFL)
Old Dominion Freight Lines, $ODFL, started higher at the end of June last year. It accelerated after the election in November and then settled into a sideways consolidation where it still sits. The recent activity sees it back at the April high from a higher low. The RSI is bullish and strong with the MACD rising. Look for a push over resistance to participate higher…..
Up Next: Bonus Idea
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 heading into the first full week of June sees equity markets looking strong.
Elsewhere look for Gold to push higher in consolidation while Crude Oil moves lower in its consolidation. The US Dollar Index continues to look weak and moving lower while US Treasuries are biased higher. The Shanghai Composite remains in consolidation and Emerging Markets are biased to continue higher.
Volatility looks to remain at abnormally low levels keeping the bias higher for the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts show strength in the SPY and QQQ on both timeframes, with the QQQ starting to get extended on a momentum basis. The IWM looks strong on the longer timeframe as is slowly rises, but at the top of resistance short term. Use this information as you prepare for the coming week and trad’em well.
DISCLAIMER: 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.