#$tkr

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5 Trade Ideas for Monday: BlackRock, FARO, Generac, Oceaneering and Timken

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

BlackRock, Ticker: $BLK

BlackRock, $BLK, paused in a move higher as it fully retraced the pandemic drop. It then continued to a top in January. Since then it has pulled back to support with the RSI falling and the MACD negative and dropping. Look for a drop under support to participate…..

FARO Technologies, Ticker: $FARO

FARO Technologies, $FARO, plodded higher until a spike up 2 weeks ago. it has consolidated since. The RSI is pulling back from overbought with the MACD leveling and positive. Look for a break of consolidation to participate…..

Generac, Ticker: $GNRC

Generac, $GNRC, ran to a top in February and then pulled back. It ended last week possibly reversing higher with the RSI turning up and the MACD falling but positive. Look for continuation to participate…..

Oceaneering, Ticker: $OII

Oceaneering, $OII, topped in January and then pulled back to a higher low. it has since reverse and is now back at that high. The RSI is rising in the bullish zone with the MACD positive and rising. Look for continuation to participate…..

Timken, Ticker: $TKR

Timken, $TKR, had a steady rise to a top in January. It has pulled back since to a low in February and is now moving back high at short term resistance. The RSI is holding just under a move into the bullish zone with the MACD crossed up and about to turn positive. 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 month of February in the books, saw equity markets looking fatigued with a bit of weakness.

Elsewhere look for Gold to continue its downtrend while Crude Oil moves to the upside. The US Dollar Index continues to trend lower while US Treasuries dropped to a 13 month low in their downtrend. The Shanghai Composite looks to pullback in its uptrend while Emerging Markets drop to retest break out levels in their trend higher.

The Volatility Index looks to continue slightly elevated making the path harder for equity markets to the upside. Their charts continue to look strong on the longer timeframe. But on the shorter timeframe both the IWM and SPY are resetting to the 50 day SMA after being extended while the QQQ is showing more weakening. Use this information as you prepare for the coming week and trad’em well.

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5 Trade Ideas for Monday: Agilent Technologies, Commerce Bancshares, Palo Alto Networks, Pfizer  & Timken

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Agilent Technologies, Ticker: $A

Agilent Technologies, $A, started higher in December with a move up over its 200 day SMA. It continued higher only once retracing to its 50 day SMA during consolidation in August. Coming into the new week it has moved higher to resistance off of its lower Bollinger Band. It has rising and bullish RSI and a MACD about to cross up. Look for a push over resistance to participate higher.....

Commerce Bancshares, Ticker: $CBSH

Commerce Bancshares, $CBSH, rocketed higher in November, finding resistance at the beginning of December. It converted into a consolidation channel after that, oscillating in a wide range with only a minor test out of the top and the bottom that both failed. Friday saw it finish the week at the top of the range with a RSI that is bullish and rising and a MACD moving higher. Look for a push over the range to participate higher.....

Palo Alto Networks, Ticker: $PANW

Palo Alto Networks, $PANW, gapped higher to start June and then consolidated in a broad range drifting back to the 10 and 200 day SMA's. The in gapped higher again to start September. This time it also pulled back near the 50 day SMA before reversing back higher. It has had a two step move to the upside and is now back at the prior high. The Bollinger Bands had squeezed and are now opening to allow a move. The RSI is bullish and rising while the MACD is crossed up and rising. Look for a move over resistance to participate higher.....

Pfizer, Ticker: $PFE

Pfizer, $PFE, plateaued from February into March and then again in June. It made a series of small body candles as it approached that level again in September and then burst to the upside and kept running to atop mid-month. After a pullback to the 20 day SMA it moved back higher and is at the prior high as resistance. The RSI is bullish and strong while the MACD is flat. Look for a push to a new high to participate higher....

Timken, Ticker: $TKR

Timken, $TKR, also started a move higher in November. It consolidated that move through February and March before a second move up to resistance that has held since. The pullbacks in consolidation have reconnected price to the 200 day SMA in August, and that acted as a catalyst for the latest drive higher. The RSI is rising and bullish while the MACD is avoiding a cross down. Look for a push through resistance to participate higher.....

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 next week sees the SPY and IWM looking ready to hand over the lead to the QQQ as they take a breather after strong runs.

Elsewhere look for Gold to continue lower while Crude Oil also moves to the downside. The US Dollar Index looks better to the upside short term while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are biased to the upside for the week.

Volatility looks to remain very low keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts all look great on the longer timeframe, while the SPY and IWM are extended in the shorter timeframe and could pause or pullback slightly. Use this information as you prepare for the coming week and trad'em well.

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Ball Bearings for Your Portfolio - Timken

Ball Bearings.  Not a complex industrial item.  But in the industrial space you don't need to make complex products to do well.  Timken ($TKR) makes ball bearings.  It started with Henry Timken in 1899.  Oh they make a lot of other things too.  They are a local company, headquartered in Canton, Ohio, so they get some of my attention all the time.

But when the chart of the stock price is behaving well the company gets a bit more of my attention.  This is one of those times.  The chart below shows the price moved higher off of a low in January, topping out over 37 in April.  Since then it pulled back and consolidated before a send drop.  That had it pass through a 50% retracement of the move higher.

But since then it has been moving higher.  A surge up and then a bull flag.  It has done this 3 times and Tuesday sees it breaking the latest bull flag to the upside.  A Measured Move would see it retest the April high.  The momentum is on its side.  The RSI is bullish and rising while the MACD is about to cross up again.  The Bollinger Bands® have not opened yet though, and the price is right at a resistance zone that has capped it for the last 4 months.  A break of that resistance with opening Bollinger Bands would be a buy signal.

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5 Trade ideas for Tuesday: BorgWarner, Mellanox, MGIC Investment, PC Connection, Timken

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, is a bottoming and reversal play. The stock fell from a consolidation in July and then based again for 5 months. It started 2016 with a second move lower to the current base. The RSI is turning up and the MACD crossed and is rising. With the tight Bollinger Bands® a move may be imminent. Look for a move over resistance to participate.

Mellanox Technologies, Ticker: $MLNX

Mellanox Technologies, $MLNX, pulled back from June through to a double bottom in September 2015. The bounce higher made for a lower high and it pulled back again, but to a higher low. Since that bottom in January the stock came near a retest of the October high and pulled back, but to a higher low this time. With that pullback the RSI held in the bullish zone and the MACD avoided a cross down, kissing the signal line and turning. The move Friday started the next leg higher.

MGIC Investment, Ticker: $MTG

MGIC Investment, $MTG, had a slow roll lower starting in July that accelerated lower into 2016. Since then it has been consolidating in a ascending triangle. The RSI is rising and near the mid line as the MACD moves higher. Look for a break of resistance to participate to the upside.

PC Connection, Ticker: $PCCC

PC Connection, $PCCC, moved lower through the back half of 2015 to a base around $20. The jump up in November and then consolidation teased of a move higher but failed, falling back to support to start 2016. The gap up in mid January retested the prior high and it is now consolidating. The RSI is in the bullish zone and turning up as the MACD rises, both supporting a push higher. Look for a break above resistance to participate in the upside.

Timken, Ticker: $TKR

Timken, $TKR, fell from a consolidation in March. It seemed to have found some support after making a low in September. But December started a new move lower to a 'V' bottom in January. For the last month it has been rising. Friday broke a bull flag to the upside to resistance. The RSI is bullish and rising while the MACD is rising. A push over resistance is a signal to participate to the upside.

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. Heading into the February Operations Expiration Week, the equity markets started with a weak move lower and then consolidation with a promise Friday.

Elsewhere Gold looks overdone to the upside and ready for a pullback while Crude Oil bounces in the downtrend. The US Dollar Index has short term strength in the downturn while US Treasuries may also be overdone to the upside and ready to pullback. The Shanghai Composite comes back after a week off looking to consolidate while Emerging Markets consolidate in their downtrend.

Volatility looks to remain elevated keeping the bias lower for the equity index ETF's SPY, IWM and QQQ. Their charts show possible reversals higher in the downtrend in the short run, but intermediate weakness remains. Use this information as you prepare for the coming week and trad'em well.

More at Dragonfly Capital

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5 Trade Ideas for Monday: Panera, Fifth Third, Mylan, Flextronics & Timken

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.

Fifth Third, Ticker: $FITB

Fifth Third, $FITB, bounced off of a bottom in October and is back at resistance. The latest move takes it over the 200 day SMA and a push higher could change the consolidation to an uptrend. The RSI and MACD both support more upside.

Flextronics, Ticker: $FLEX

Flextronics, $FLEX, is at resistance since June after a pullback to the break out range from earlier this year. The RSI is in the bullish range and rising and the MACD is crossing up, a buy signal.

Mylan, Ticker: $MYL

Mylan, $MYL, moved higher out of a bottom and consolidation in October to a new high to end November. After a pullback it is moving higher again and now consolidating with a MACD about to cross up and a RSI pushing on the bullish zone.

Panera Bread, Ticker: $PNRA

Panera Bread, $PNRA, has built a Cup and Handle since April, and is now triggering over the lip of the cup. The RSI is supporting a continuation higher as is the rising MACD.

Timken, Ticker: $TKR

Timken, $TKR, pulled back hard from a top this summer to a low in October. The rebound reached prior support before falling and is now back at that level from a higher low. The MACD is rising and the RSI on the edge of a move into the bullish zone as it pushed higher.

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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, heading into the last week of 2014, sees the equity markets looking positive, with a possible major rotation into small caps under way.

Elsewhere look for Gold to bounce hold between 1180 and 1200 in its downtrend while Crude Oil builds a base near 55. The US Dollar Index looks to continue higher while US Treasuries are biased lower in the short run, within their uptrend. The Shanghai Composite sits at resistance but with a strong look and could just keep moving up while Emerging Markets are biased to the upside in their downtrend.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF's SPY, IWM and QQQ, despite the moves higher. Their charts look solid as the SPY sits at all-time highs and the QQQ at 14 year highs. The IWM may be breaking a 14 month range to the upside, which could trigger a major rotation into small caps. Use this information as you prepare for the coming week and trad'em well.

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