5 Trade Ideas for Monday: Boeing, CBOE, Costco, Mylan and UnitedHealth Group
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5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Boeing, Ticker: $BA
Boeing, $BA, had a strong run higher out of a base beginning in October. It paused and consolidated the move from December through January and then resumed. It peaked at the beginning of March and has digested that move with a shallow pullback since. The digestion looks to be turning higher now, with the MACD level and the RSI holding at the mid line while the Bollinger Bands® squeeze. Look for continuation higher to participate.....
CBOE, Ticker: $CBOE
CBOE, $CBOE, moved up out of a double bottom in January. Into February the pace slowed and it started to consolidate in an ascending triangle. Friday ended at the top of the triangle with the Bollinger Bands® squeezing, often a precursor to a move. The RSI is in the bullish zone while the MACD is flat, but positive. Look for a push over resistance to participate higher.....
Costco, Ticker: $COST
Costco, $COST, started higher to of consolidation in December. It paused in January for a bit, before a second leg higher, taking it to a peak at the beginning of March. It gapped lower from there, falling back to the prior consolidation level and paused before moving back higher at the end of last week. Now it sits at the bottom of the gap with the Bollinger Bands® opening and the RSI rising into the bullish zone. The MACD is also about to cross to positive. Look for a push into the gap to participate higher.....
Mylan, Ticker: $MYL
Mylan, $MYL, pulled back from a top in August, finding support in November. It consolidated in a broad range at that bottom until pushing higher out of it in February. The break out failed to make a new high though and started falling back at the beginning of March. Last week it found support and started to consolidate. Friday it started to push back higher, reversing. The RSI is also moving up off of an oversold condition and the MACD is leveling. Look for follow through to participate to the upside.....
UnitedHealth Group, Ticker: $UNH
UnitedHealth Group, $UNH, started higher off of the 50 and 100 day SMA's in November. It met resistance in mid-December and consolidated again until a break out to the upside at the end of February. That move came back to retest the break out level and has found support at the 20 day SMA. The RSI is turning back higher and the MACD is about to cross up, giving it support for a move up. Look for a push up above the current consolidation to participate higher.....
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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 holiday shortened week for Easter, sees the equity markets still looking a bit vulnerable in the short run and stronger in the intermediate.
Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues higher. The US Dollar Index looks better to the upside while US Treasuries remain in their consolidation range. The Shanghai Composite looks to continue to plod slowly higher and Emerging Markets also continue to look strong.
Volatility looks to remain at abnormally low levels keeping the wind at the back of the equity Index ETF's as they all consolidate. The SPY and IWM look more vulnerable than the QQQ on their daily charts. All look stronger on weekly charts with the IWM showing the strongest potential for an early move. Use this information as you prepare for the coming week and trad'em well.
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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.
This article was written by Greg Harmon for Dragonfly Capital on Apr 9, 2017.
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