5 Trade Ideas for Monday: Arena, Coupa, Exact Sciences, Skyline and Square
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Arena Pharmaceuticals, Ticker: $ARNA
Arena Pharmaceuticals, $ARNA, found support after a gap down in November and then started higher. It closed the gap as it topped in February and then reversed lower. That move found support and reversed higher 2 weeks ago. it comes into the week at resistance with the RSI rising in the bullish zone and the MACD positive and rising. Look for a push over resistance to participate…..
Coupa Software, Ticker: $COUP
Coupa Software, $COUP,made a bottom 2 weeks ago and then started higher. It ended the week pushing up through resistance with the RSI rising towards the bullish zone and the MACD about to cross to positive. Look for continuation to participate…..
Exact Sciences, Ticker: $EXAS
Exact Sciences, $EXAS, started higher in May and has moved higher in 2 steps. It ended last week starting a third step with the RSI rising in the bullish zone and the MACD positive and climbing. Look for a push over resistance to participate…..
Skyline Champion, Ticker: $SKY
Skyline Champion, $SKY, gapped up and made a top at the end of May. It pulled back and found support before ending last week with a move back higher. The RSI is also rising again in the bullish zone with the MACD turning to cross up. Look for continuation to participate…..
Square, Ticker: $SQ
Square, $SQ, fell back to the 200 day SMA in May and then found support. It has moved higher since and has a RSI rising into the bullish zone and a MACD positive and climbing. Look for continuation to participate…..
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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 with the June options expiration in the books, saw equity markets showed some weakness, especially outside of the Nasdaq.
Elsewhere look for Gold to continue its short term pullback while Crude Oil pauses in its uptrend. The US Dollar Index is ripping to the upside short term while US Treasuries drive higher as well. The Shanghai Composite looks to continue to consolidate while Emerging Markets pullback in consolidation.
The Volatility Index looks to remain low, but no longer very low, removing the wind at the backs of the equity markets. Their charts remain strong on the longer timeframe, with the QQQ rising while the SPY and IWM hold in consolidation. On the shorter timeframe both the IWM and SPY have given back some ground and look a bit weakened as the QQQ holds at the highs. Use this information as you prepare for the coming week and trad’em well.