5 Trade Ideas for Monday: CBOE, Danaher, Dunkin’ Brands, St. Joe & Qlik
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.
CBOE, $CBOE, had a long pullback guided by falling trend resistance until finding a bottom in May. It broke that trend with a move higher and has been consolidating against resistance since. Friday saw the price back at resistance and above the rising 200 day SMA. It has support for more upside from a rising and bullish RSI and a MACD about to cross up.
Danaher, $DHR, rose off of the October 2014 low quickly, but then consolidated for the last 7 months. It has a false break out over resistance in May that did not last even one day, but continued a broad series of higher highs and higher lows. The RSI remains in the bullish zone and is rising with the MACD crossed up and rising.
Dunkin' Brands, Ticker: $DNKN
Dunkin' Brands, $DNKN, was on the radar for a trade higher after the Cup it formed in May. The price did move higher but stopped short of the target of the Cup and Handle pattern at 56.75. Or has it? Now the price is consolidating against resistance with a bullish and rising RSI and a rising MACD. Not how all the SMA's are rising and parallel, a great trend.
St. Joe, $JOE, had a long run lower to a bottom in January. It looked to be consolidating then and broke out to the upside. But the move back higher out of consolidation turned out to be a Dead Cat bounce and it started back lower. Now it has consolidated again for the last 6 weeks and is back against resistance. As it arrives the RSI is pushing into the bullish zone and rising while the MACD is rising.
Qlik Technologies, Ticker: $QLIK
Qlik Technologies, $QLIK, started a move higher out of consolidation in February. The rise stalled out in May and it moved sideways until a pullback that ended last week. The last red candle, out of the Bollinger Bands® makes it interesting as a possible reversal. The following Harami Hammer doji adds to it. the confirmation higher and back into the Bollinger Bands with follow through Friday seals the deal. The RSI is rising as well now with only the MACD diverging. But even that is starting to slow its descent.
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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 heat of Summer sees the Equity markets looking vulnerable on the short time frame and just sideways on the longer timeframe.
Elsewhere look for Gold to continue the broad consolidation with a downward bias while Crude Oil looks to move lower. The US Dollar Index looks to continue to consolidate in a tightening range sideways while US Treasuries are consolidating but biased lower. The Shanghai Composite is crashing and shows no sign of letting up yet while Emerging Markets may be bouncing in their downtrend. Volatility looks to remain low but above recent levels and with a risk of more upside easing the tailwind it has given the equity indexes.
The ETF's SPY, IWM and QQQ, themselves all appear vulnerable on the daily timeframe with the QQQ the strongest looking flat. On the longer timeframe the QQQ is also looking the strongest but has pulled back to trend support with the IWM looking weaker. Perhaps some rotation out of small caps and into technology and larger caps to come. Use this information as you prepare for the coming week and trad'em well.
