5 Trade Ideas for Monday: Abbott Labs, Edwards Lifesciences, First Energy, Ellie Mae and Molson Coors
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers
Abbott Laboratories, Ticker: $ABT
Abbott Laboratories, $ABT, started a move lower to begin 2016 and continued for a month. It found a bottom at the end of January, down over 20%. Since then started higher, closing a gap from January and then continuing up. The RSI is in the bullish zone and the MACD rising, supporting more upside.
Ellie Mae, $ELLI, had a slow grind lower from an August high to a consolidation zone from November to January. A failed push higher saw it fall back to that zone before a quick move higher to the current consolidation. The RSI is in the bullish zone and the MACD resetting lower. Look for a move up out of consolidation to participate.
Edwards Lifesciences, Ticker: $EW
Edwards Lifesciences, $EW, ran higher in a series of advances and pullbacks over 2015. In February it started higher again reaching 90 before the current retracement. Friday saw a strong move higher in the falling channel to the top. The RSI is moving back higher after tagging the mid line and the MACD is turning up. Look for a break of the channel to participate in the upside.
FirstEnergy, $FE, pulled back for almost all of 2015, finding its low in mid November. Since then it has reversed higher through a broad consolidation in December and January then a bit tighter over February, and even tighter now. Momentum is strong with the RSI in the bullish zone and the MACD flat and trying to avoid a cross down. Look for a move over resistance to participate to the upside.
Molson Coors Brewing, Ticker: $TAP
Molson Coors Brewing, $TAP, moved higher from the August low to a high in November. It stalled there and consolidated until starting to fall at the beginning of 2016. It pulled back and recovered before making a lower low, touching the 200 day SMA February 11th. Since then it has moved higher and is back at resistance. The RSI is in the bullish zone and the MACD is rising. Look for a break of resistance to the upside 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 heading into the end of the first Quarter sees the run up in equities may have exhausted, at least in the short term.
Elsewhere look for Gold to continue to pullback in its uptrend while Crude Oil does the same, but with a possible bounce. The US Dollar Index continues higher in the consolidation range while US Treasuries may be breaking their downtrend to the upside. The Shanghai Composite looks better to the upside in the downtrend while Emerging Markets are biased to the downside in their uptrend.
Volatility looks to remain low keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts suggest the recent uptrend may be exhausting though with the SPY lading to the downside followed by the QQQ and the IWM consolidating. Use this information as you prepare for the coming week and trad'em well.
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