5 Trade Ideas for Monday: Endo, Fiesta Restaurant, JD, Worthington and Zions
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers
Endo International, Ticker: $ENDP
Endo International, $ENDP, fell from a plateau near 60 to start the year. It found support finally in May after an exhaustive gap down move and has drifted higher since. In August it moved higher on strong volume early in the month and then pulled back to fill the gap below. Now it is back at that prior high after a strong move Friday. Look for a push above resistance to participate to the upside.....
Fiesta Restaurant Group, Ticker: $FRGI
Fiesta Restaurant Group, $FRGI, started lower in February 2015, finding support last November. That support lasted for 6 months before it fell again in May on heavy volume. It made new lows in June and bounced to resistance before falling back to the same support level. Now it is moving up again and pushing through that prior resistance. The RSI is in the bullish zone and the MACD is positive. Look for continuation to participate to the upside.....
JD.com, $JD, has been a volatile stock. After a strong move lower to start the year it retraced most of the down leg by April. Then it fell again to a new low in June. Since then it has been rising. At the start of September it moved over its 200 day SMA in a pronounced way and has held there, consolidating under resistance. The RSI has turned back higher in the bullish zone and the MACD is curling back up. Look for a push over resistance to participate to the upside.....
Worthington Industries, Ticker: $WOR
Worthington Industries, $WOR, had a long run higher until it found resistance in July. It has pulled back in a bull flag since then with a bigger dip into September. It started back higher off of the 100 day SMA in mid-September and is now pressing against falling resistance. The company reports earnings on Wednesday. Look for a push through resistance to participate to the upside.....
Zions Bancorporation, Ticker: $ZION
Zions Bancorporation, $ZION, started the latest leg higher from a retest of support at 23.50 in July. The pullback from a peak at the start of September created a bull flag and the price broke that to the upside Friday. The RI is bullish and turning back higher while the MACD is level and stopped falling. Look for follow through 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 which heading into the last week of September sees the Equity Indexes looking strong, especially on the longer timeframe.
Elsewhere look for Gold to move higher short term in consolidation while Crude Oil consolidates. The US Dollar Index also looks to continue to move sideways while US Treasuries are biased higher. The Shanghai Composite looks to drift higher while Emerging Markets are biased to the downside in the short term.
Volatility looks to remain at abnormally low levels keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts show strength in moving higher at the end of the week, especially in the longer timeframe. Use this information as you prepare for the coming week and trad'em well.
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