5 Trade Ideas For Monday: BUD, DEO, LNG, MOMO, UNP
Dragonfly Capital | May 15, 2017 01:01AM ET
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Anheuser-Busch Inbev SA (NYSE:BUD)
This Bud is for you! Anheuser-Busch InBev, $BUD, fell hard and fast from October through to mid-November. But after a 30% drop, it found a bottom to start December. Since then it has trended slowly higher, until gapping up last week. The digestive pullback after looks to have price breaking to the upside Friday. The RSI is bullish and the MACD rising, both supporting more upside. Look for continuation to participate higher…..
Diageo (LON:DGE) PLC ADR (NYSE:DEO)
Prefer wine or spirits? Diageo, $DEO, started higher in December off of a base. It paused at the 50 day SMA and then at the October high, retracing slightly each time. A second stall at resistance lasted a week before a push to the upside and then consolidation in a bull flag. The price looks ready to break that flag to the upside. The RSI is high in the bullish range with the MACD rising. Look for continuation higher to participate…..
Cheniere Energy Inc (NYSE:LNG)
Now consider the environment. Cheniere, $LNG, started higher in June last year. That move peaked in September and then pulled back to a higher low. A second move ran up to 50 in January before a consolidative move that has lasted ever since. Friday saw a pierce through resistance but then a pullback. The RSI is bullish and rising as the MACD is crossed up and rising. Look for continuation higher to participate…..
Momo Inc (NASDAQ:MOMO)
Get The News You Want
MOMO, $MOMO, had a strong run higher from July to September. It consolidated that move for even longer before adding a second leg higher beginning in December. The second leg hit resistance at the start of April and has moved sideways since. The RSI is in the bullish zone while the MACD is trying to turn up, and positive. Look for a push over resistance to participate higher…..
Union Pacific (NYSE:UNP)
Union Pacific, $UNP, roared up from a low in November. But by early December that has settled into a slow grind up and a sideways channel. Last week the stock was pulling back and found support at the 20 day SMA, a higher low. The RSI has turned up and the MACD is leveling after a pullback. Look for continuation to participate higher…..
Up Next: Bonus Idea
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 May options expiration, sees the equity markets looking mixed with strength in the PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) and exhaustion in the iShares Russell 2000 (NYSE:IWM) and SPDR S&P 500 (NYSE:SPY)
Elsewhere look for a possible reversal higher in the Gold downtrend while Crude Oil consolidates. The US Dollar Index looks to continue the drift lower while US Treasuries are biased lower in consolidation, but show the possibility of a reversal short term. The Shanghai Composite is trending lower but also showing signs of a possible reversal while Emerging Markets continue to roar higher.
Volatility looks to remain at exceptionally low levels keep the wind at the backs of the equity index ETF’s SPY, IWM and QQQ. Their charts show continued strength in the QQQ with consolidation in the SPY and IWM. Use this information as you prepare for the coming week and trad’em well.
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