5 Trade Ideas for Monday: Air Products, Ciena, CME, CSX and Mylan
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Air Products and Chemicals, Ticker: $APD
Air Products and Chemicals, $APD, ran from a January 2019 low to a top in July before resting. After a move back near the 200 day SMA in October it pushed higher again. It made a higher high in November and pulled back to a higher low. Now it is back at the high. The RSI is rising and bullish with the MACD moving up and positive. Look for a push over resistance to participate…..
Ciena, Ticker: $CIEN
Ciena, $CIEN, peaked in July and then started lower. It fell through its 200 day SMA in September an then consolidated for 2 months. A final bottom a few days later led to a gap up in December. It has held in consolidation under resistance since. The RSI is strong in the bullish zone with the MACD positive, leveling and ready to cross up. Look for a push over resistance to participate…..
CME, Ticker: $CME
CME, $CME, ran from a bottom in March to a top in September. It had a shallow pullback from there, holding over the 200 day SMA. It started higher in December and is now at resistance. The RSI is rising and bullish with the MACD moving up and positive. Look for a push over resistance to participate…..
CSX, Ticker: $CSX
CSX, $CSX, was consolidating sideways from June into July and then it gapped down. That lead to a bottom in August. Since then it has trended higher, and has now filled the gap and met resistance. The RSI is rising and bullish with the MACD positive and moving higher. Look for a break over resistance to participate…..
Mylan, Ticker: $MYL
Mylan, $MYL, fell off of a cliff in May, after a long run lower. It found a bottom at the end of the month. It consolidated in a range for the next 8 months. it is now at the top of the range with the RSI rising and bullish and the MACD slowly moving higher. Look for a push through resistance 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 saw the corona virus as the catalyst that is pushing sellers to enter the market. It is early in the process but so far markets are proving very resilient, with only minor pullbacks. Perhaps because of the strong earnings releases.
Next week could prove to be a very important week for the short term future of equity markets. Elsewhere look for Gold to continue higher while Crude Oil pulls back in broad consolidation. The US Dollar Index looks to continue its short term move higher in the downward channel while US Treasuries accelerate to the upside.
The Shanghai Composite will be closed until February but looks better lower while Emerging Markets pullback in an uptrend. The Volatility Index looks to remain low but is starting to rise off of very low levels. This could put a drag on equity markets. Their charts look strong on the longer timeframe, but the overheated run higher is correcting in the shorter one. On the daily charts the QQQ are pausing with the SPY pulling back while the IWM is pulling back in broad consolidation. Use this information as you prepare for the coming week and trad’em well.
