5 Trade Ideas for Tuesday: Conagra, Cincinnati Financial, Eaton, Edwards and Foot Locker
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Conagra, $CAG, gapped higher in December and has retraced since. That ended Friday when it shot higher to end the week. The RSI is also rising in the bullish zone with the MACD turning to cross up. Look for continuation to participate…..
Cincinnati Financial, Ticker: $CINF
Cincinnati Financial, $CINF, peaked in October and then started to roll over. It found support at the confluence of the 50 and 200 day SMA’s at the end of the year. Last week it started to move back higher. The RSI is rising in the bullish zone with the MACD about to cross to positive. Look for continuation to participate…..
Eaton, $ETN, started higher off of its 200 day SMA in October. The move up has continued but recently slowed and then turned into consolidation. It was rolling lower early last week then recovered to end at resistance. The RSI is rising and bullish with the MACD looking to turn back up and positive. Look for a push over resistance to participate…..
Edwards Lifesciences, Ticker: $EW
Edwards Lifesciences, $EW, started higher in June and found a top in November. It consolidated there for 2 weeks and then pulled back to support where it has been consolidating at a slightly lower range. Friday it broke the short term range higher. The RSI is rising in the bullish zone with the MACD crossing to positive. Look for continuation to participate…..
Foot Locker, $FL, gapped down in May and has moved in a broad range since. It rose from a low in August to make a high outside of the range in November then pulled back. It found support at a higher low and is consolidating. The RSI is rising toward the mid line with the MACD rising toward zero. Look for a push over resistance to participate…..
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 January options expiration complete, saw equity markets strong but some approaching overheated levels.
Elsewhere look for Gold to continue its pullback in the uptrend while Crude Oil pulls back in the broad range consolidation. The US Dollar Index looks to continue to bounce in its downtrend while US Treasuries consolidate over support in their pullback. The Shanghai Composite looks to continue to consolidate in the uptrend while Emerging Markets move higher.
The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts also look strong on both timeframes. On the shorter timeframe both the QQQ and SPY could use a reset on momentum measures as both are extended and near extreme. The IWM is starting to catch up to them as it approaches the all-time high. Use this information as you prepare for the coming week and trad’em well.