5 Trade Ideas for Monday: Cree, Gilead, Regions Financial, United Continental & UPS
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Cree, $CREE, pulled back from a high in June, finding support at the 100 day SMA. It bounced from there over the 50 day SMA and has ridden it higher since. Last week the Bollinger Bands squeezed and then the price broke to the upside. The RSI is rising and bullish with the MACD turning up and positive. Look for continuation to participate higher.....
Gilead Sciences, Ticker: $GILD
Gilead Sciences, $GILD, rose off of a bottom in May, reaching a plateau in June and then making a second move to the current consolidation. As that tightens it has a RSI flat in the bullish zone with the MACD crossed and resetting lower, but positive. Look for a break to the upside to participate higher.....
Regions Financial, Ticker: $RF
Regions Financial, $RF, made a top in March after a run up off of a September low. Since then it has pulled back in a channel, slowing as it hit the 200 day SMA. Since July it has moved up and is pushing out of the channel. The RSI is rising in the bullish zone with the MACD moving up and positive. Look for continuation to participate.....
United Continental, Ticker: $UAL
United Continental, $UAL, pulled back in January and found support in early February. It bounced and consolidated for several months before a gap higher in July. That was followed by consolidation in a bull flag that may be breaking now. The RSI is bullish and the MACD avoiding a cross down. Look for a push higher to participate.....
UPS, $UPS, moved off of a low in March, reaching a top in June. It pulled back hard from there though, finding support at a higher low in July. Another strong move had it make a higher high late in July and it has consolidated since. The RSI is in the bullish zone and the MACD is bullish and rising. Look for a second push higher 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 dog days of August sees the equity markets are looking poised for a move.
Elsewhere look for Gold to possibly pause in the downtrend while Crude Oil holds at support in the uptrend. The US Dollar Index is in a possible reversal higher while US Treasuries are pulling back in consolidation. The Shanghai Composite is renewing its downtrend and Emerging Markets are bouncing in a pullback.
Volatility looks to remain very low keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts also show strength with the SPY leading the charge in the short term, the IWM right behind it and the QQQ trying to reverse higher. Use this information as you prepare for the coming week and trad'em well.
