5 Trade Ideas For Monday: AEP, HD, ORCL, PPG, ZTS
Dragonfly Capital | Apr 24, 2017 01:07AM ET
American Electric Power Company Inc (NYSE:AEP)
American Electric Power, AEP, started to move higher in December. It paused mid-month and into January before a second leg higher. It ran out of the Bollinger Bands® in February and pulled back to a higher low before moving to the latest consolidation zone.
With the Bollinger Bands squeezed it may be ready to move higher again. The RSI is holding in the bullish zone while the MACD is pulling back but positive. Look for a push over resistance to participate higher…..
Home Depot (NYSE:HD)
Home Depot, HD, started moving higher in November, reaching a peak in December. After a consolidation period it started a second move higher to the current consolidation. The Bollinger Bands® came together at the end of March and last week they opened as the price pushed to the top of consolidation with a Marubozu candle Friday. The RSI is rising in the bullish zone and the MACD is crossing up. Look for a push through resistance to participate higher…..
Oracle (NYSE:ORCL)
Oracle, ORCL, started higher in January, pausing at the end of February before a gap higher at earnings. It has been pulling back since that gap up, but found support 2 weeks ago as it hit the lower Bollinger Band®. It has been slowly turning higher since, with the Bollinger Bands squeezing in. The RSI held in the bullish zone while the MACD is now level after resetting lower. Look for continuation higher to participate to the upside…..
PPG Industries Inc (NYSE:PPG)
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PPG, PPG, gapped down in October and quickly found a bottom. Since then it has steadily moved higher. A spike in March sold off and it has now settled into consolidation under 107. The RSI is holding in the bullish zone while the MACD is flat. Look for a push over resistance to participate higher…..
Zoetis Inc (NYSE:ZTS)
Zoetis, ZTS, had a strong run up from December to a peak in mid-February. It pulled back from there, finding support at the 100 day SMA and has consolidated in a range ever since. Last week saw it move up to the top of the range as the RSI moved up into the bullish zone and the MACD crossed up. Look for a push over 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 with April Options Expiration behind, saw the equity markets a bit stronger than last week in the short term and still in consolidation longer term.
Elsewhere look for Gold to pause in its uptrend while Crude Oil continues to pull back lower. The US Dollar Index remains moving sideways in broad consolidation while US Treasuries continue to look better to the upside in the short term. The Shanghai Composite has morphed into a consolidation with a downward bias short term and Emerging Markets are pulling back in their uptrend.
Volatility has moved up slightly from abnormally low levels to a more normal range but still low which continues to keep an upward push on the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts look stronger in the short term, with the QQQ and IWM stronger than the SPY, but with all three consolidating near their highs and strong in the intermediate term. Use this information as you prepare for the coming week and trad’em well.
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