5 Trade Ideas For Monday: Biogen, Cummins, Dupont, Fifth Third Bancorp
Gregory W. Harmon | Jun 12, 2017 02:32AM ET
Biogen (NASDAQ:BIIB), Ticker: BIIB
Biogen, BIIB, stalled just short of 300 in March and moved lower to support. It gapped up again in late April but could not hold and moved lower quickly. The eventual low in May fell below the January low. A lower high and then a lower low is a definition of a downtrend. Two weeks ago the stock printed a Hammer candle and it confirmed as a reversal the next day. After a small pullback in a bull flag it started higher again Friday. The RSI is building and on the edge of a move into the bullish zone while the MACD is crossed up and rising. Look for continuation to participate higher.
Cummins (NYSE:CMI), Ticker: CMI
Cummins, CMI, has been trending higher since the February 2016 low. Recently it has consolidated in a symmetrical triangle since the beginning of May, ending Friday at the top of the triangle. The RSI is holding in the bullish zone and the MACD is crossing back higher and positive. Look for a break of the triangle to participate higher…..
E.I. du Pont de Nemours (NYSE:DD), Ticker: DD
E. I. duPont de Nemours, $DD, started higher in February 2016 as well, pausing in the fall of 2016. It then continued higher to a peak in March. Since then it has pulled back twice, to a lower low, and then bounced back to resistance. Friday broke that resistance to the upside. The RSI is strong in the bullish zone and the MACD is bullish and rising. Look for continuation to participate in a move higher.
Fifth Third Bancorp (NASDAQ:FITB), Ticker: FITB
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Fifth Third Bancorp, $FITB, moved high in October, and then accelerated following the election. It made a top on a spike higher at the start of March and immediately fell back, starting a long move lower. That move slowed in late March into a falling channel that held until Friday. That is when it broke to the upside.The RSI also broke higher to the edge of the bullish zone and the MACD is now crossed up and rising. Look for continuation to participate higher.
Rockwell Automation (NYSE:ROK), Ticker: ROK
Rockwell Automation, $ROK, moved higher out of consolidation in November, steeply at first and then more slowly since January. Recently it has met resistance and pulled back to a series of higher lows. Friday saw it back at resistance with the RSI rising and the MACD turning back up. Look for a push through resistance 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 showed equities mixed heading into the June Options Expiration Week, with the IWM and SPY (NYSE:SPY) looking strong but the QQQ weak as there was rotation out of the QQQ and into IWM.
Elsewhere look for gold to continue lower while crude oil also looks better to the downside. The US dollar index continues to be biased lower while US Treasuries pullback in the uptrend. The Shanghai Composite is back to its upward drift and Emerging Markets are biased to continue higher.
Volatility looks to remain at very low levels keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show strength in the IWM and consolidation in the SPY short term with the QQQ looking diseased. Longer term all trends remain higher with real strength returning to the IWM. Use this information as you prepare for the coming week and trad’em well.
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