5 Trade Ideas for Monday: ARM Holdings, Atmel, E*Trade, Honeywell & Plum Creek
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.
ARM Holdings, Ticker: $ARMH
ARM Holdings, $ARMH, has had a strong trend higher off of a bottom in October. It pulled back near the 20 day SMA after a peak to start March, and is now moving back to that peak. As it rises the RSI is in the bullish zone and the MACD is kinking up. There has been strong Call buying in the name recently as well.
Atmel, Ticker: $ATML
Atmel, $ATML, is back testing a resistance zone its third touch there. The last two have come after some consolidation following a move higher off of a low in October. As it probes resistance the RSI is bullish and rising and the MACD is crossing up.
E*Trade Financial, Ticker: $ETFC
E*Trade Financial, $ETFC, has been moving higher out of some consolidation to end 2014 and start 2015. The 20 day SMA has been a guide higher and last week saw another pullback to that level before a move up Friday. The RSI is bullish and the MACD is already starting to level after a pullback.
Honeywell, Ticker: $HON
Honeywell, $HON, has been trending higher in a channel since April 2014. It touched the top of the channel Friday before pulling back, on very strong volume. The RSI remains bullish and is rising while the MACD is crossing up. Perhaps this is the time it pushes through the channel.
Plum Creek Lumber, Ticker: $PCL
Plum Creek Lumber, $PCL, rose off of a low in October as well. This stock then made a top in February before pulling back to the 100 day SMA 2 weeks ago. Now rising again, it is testing short term resistance. The RSI is rising and on the verge of a move in to the bullish zone while the MACD has crossed up, both supporting more upside. And the Bollinger Bands® are opening higher as well.
If you like what you see sign up here for how to trade these, more ideas and deeper analysis.
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 spring, College Basketball's March Madness, the April options cycle and the last full week of March, sees the equity markets are looking strong.
Elsewhere look for Gold to bounce higher in its downtrend while Crude Oil consolidates in its downtrend. The US Dollar Index is consolidating the move up and US Treasuries are looking strong. The Shanghai Composite is also strong and looks to move higher while Emerging Markets are biased to the upside in the short run but not looking really strong.
Volatility looks to remain subdued and drifting lower keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts also look good for more upside with the IWM the strongest even at all-time highs, and the SPY and QQQ showing signs of a possible short term pause before another move up. Use this information as you prepare for the coming week and trad'em well.
More at Dragonfly Capital
