5 Trade Ideas for Monday: Electronic Arts, Envision Healthcare, Olin, T-Mobile and Westmoreland Coal
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Electronic Arts, Ticker: $EA
Electronic Arts, $EA, had a shallow pullback from a high at the beginning of October. It found support at the 200 day SMA in December and then reversed. By February it was at new highs and peaked two weeks ago. It pulled back to the 20 day SMA and found support last week, ending the week with a move higher. The RSI is rising after a reset lower in the bullish zone, while the MACD is still moving lower. Look for continuation to the upside to participate higher.....
Envision Healthcare, Ticker: $EVHC
Envision Healthcare, $EVHC, pulled back from a top last summer and settled into a lower consolidation range. It made two runs at breaking the range to the upside, one in December, and then again at the end of February, each time pulling back. The latest pull back found a bottom Wednesday printing a Hammer and confirmed a reversal Thursday with follow through Friday. The RSI and MACD are also turning up. Look for continuation to participate higher.....
Olin, Ticker: $OLN
Olin, $OLN, started higher in September, and closed a gap in December, causing a consolidation. It marked time for 2 months before starting higher again in February. Last week it met resistance and stalled again. The RSI is holding in the bullish zone while the MACD has reset lower. Look for a push over resistance to participate higher.....
T-Mobile, Ticker: $TMUS
T-Mobile, $TMUS, has steadily plodded higher since February 2016. There was a consolidation along the way last fall, and now there is a second consolidation that started in January. It has been tightening against rising support with the RSI holding in the bullish range and now looking to move higher. The MACD is also crossing up. Look for a move up out of consolidation to participate to the upside.....
Westmoreland Coal, Ticker: $WLB
Westmoreland Coal, $WLB, moved higher out of consolidation in November, finally hitting resistance at the beginning of December. It pulled back slightly and held for 2 and a half months before starting lower again. It bottomed after crossing its 200 day SMA 3 weeks ago and started higher. Now it is consolidating with each candle tightening, and the Bollinger Bands® squeezing. The RSI is holding at the mid line with the MACD crossed up and rising. Look for a break above consolidation 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 end of the first Quarter sees equity markets showing some signs of cracking, with the IWM the worst.
Elsewhere look for Gold to continue in its uptrend while Crude Oil continues lower. The US Dollar Index also looks to continue lower while US Treasuries continue higher in their consolidation range. The Shanghai Composite looks to continue a slow grind up and Emerging Markets continue to look strong.
Volatility looks to remain low but drifting higher into more normal levels. This could hold back equities in the very short term. The equity index ETF's SPY, IWM and QQQ, all had their biggest pullbacks of the year, leaving the IWM at the edge of support, the SPY pulling back and the QQQ consolidating. Use this information as you prepare for the coming week and trad'em well.
