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5 Top Trade Ideas For This Week: AVGO, CI, CINF, CTSH, FBHS

Published 05/23/2016, 01:37 AM
Updated 05/14/2017, 06:45 AM
US2000
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SPY
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QQQ
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0GQL
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CTSH
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CINF
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CI
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DX
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CL
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AVGO
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IWM
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FBIN
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SSEC
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Here are the Rest of the Top 10:

Broadcom (NASDAQ:BRCM) Ltd (NASDAQ:AVGO)

AVGO Daily Chart

Broadcom, AVGO, rose from a low in February making a new high in April. Since then it pulled back in a rounded bottom fashion and Friday started back higher. The RSI is pushing up through the mid line and the MACD has just crossed up, a buy signal. Look for continuation Monday to participate in the upside…..

Cigna (NYSE:CI)

CI Daily Chart

Cigna, CI, had a quick fall from 142 at the end of April. After finding support it started higher Friday. The RSI is also starting to rise and the MACD about to cross up. Look for continuation to participate in the upside…..

Cincinnati Financial (NASDAQ:CINF)

CINF Daily Chart

Cincinnati Financial, CINF, has had a great trend higher. It slowed in March, reconnecting with the 50 day SMA and then started higher again. Now it is consolidating under resistance. The RSI is in the bullish zone and rising and the MACD is turning back up, avoiding a cross down. Look for a break of resistance to participate to the upside…..

Cognizant Technology Solutions (NASDAQ:CTSH)

CTSH Daily Chart

Cognizant Technology Solutions, CTSH, has moved back to resistance and over the 200 day SMA with a strong move up Friday. The RSI is in the bullish zone and rising and the MACD is rising as well. Look for a break over resistance to participate to the upside…..

Fortune Brands Home & Security Inc (NYSE:FBHS)

FBHS Daily Chart

Fortune Brands Home & Security, FBHS, had a sharp rise off of a low in February with the market. It topped out in April and has pulled back slightly. Friday saw it reverse back higher, signaling a bottom has been made. The RSI is moving back higher in the bullish zone and the MACD is crossing up, a buy signal. Look for continuation to participate in the upside…..

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 with Options Expiration behind and heading into the last week before the unofficial start of summer, sees equity markets treading water.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues higher, perhaps with a short term pause. The US Dollar Index looks to continue higher while US Treasuries consolidate broadly in their uptrend. The Shanghai Composite looks to continue to consolidate with a downward bias and Emerging Markets look to head lower.

Volatility looks to remain subdued 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 continued short term confusion, with the SPY extending a long bull flag maybe too long, and the IWM and QQQ looking more like they could start a reversal higher. 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.

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