5 Stocks To Trade This Week: ABC, ANTM, COL, GNRC, IBKR
Dragonfly Capital | Mar 09, 2015 01:26AM ET
AmerisourceBergen (NYSE:ABC)
AmerisourceBergen, (ABC), has been a monster of a stock since moving higher in late October. The last two weeks it has been consolidating again, but with an expanding range to the downside. This is as the RSI has worked off an overbought condition and the MACD is crossing down. It is noticeably extended from the SMA’s. Watch for a range break top the downside.
h3 Anthem, (NYSE:ANTM)/h3Anthem, has been trending higher for over a year. In stocks like this a consolidation period, like what is happening now, is a possible opportunity to get a good entry. The RSI remains strong and bullish while the MACD has crossed down. it too is extended from the longer SMA’s, but the 20 day SMA close by has acted as support. Watch this for a break either way.
h3 Rockwell Collins (NYSE:COL)/h3Rockwell Collins, rose off of the double bottom at 71.50 and consolidated for a while around 85 before moving up again. Now hitting resistance after a slight pullback it has support for an upside breakout from a rising and bullish RSI and a MACD about to cross up.
h3 Generac, (NYSE:GNRC)/h3
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Generac, moved up out of a rounded bottom to end 2014, but pulled back early in 2015. Now having retraced the pullback and advanced it is consolidating in a tight range. As it churns the RSI is working lower, but remains bullish while the MACD has crossed down. This is normal for a consolidation and you could see this break the range in either direction. Be prepared.
h3 Interactive Brokers, (NASDAQ:IBKR)/h3Interactive Brokers, has been in a long trend higher. Recently it is consolidating in a narrow range with the Bollinger Bands® squeezing. This is often a precursor to a move. The RSI is falling but in the bullish zone while the MACD is falling. This could break the range either way and the strong rising SMA’s suggest that any pullback be watched as a possible buying opportunity.
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 next week sees the equity markets looking vulnerable.
Elsewhere look for Gold to continue lower while Crude Oil churns in a consolidation zone. The US dollar Index looks to continue higher while US Treasuries continue lower. The Shanghai Composite looks to continue its broad consolidation with a short term downside bias and Emerging Markets are biased to the downside.
Volatility looks to remain low keeping the bias higher for the equity index ETF’s (ARCA:SPY), (ARCA:IWM) and (NASDAQ:QQQ). Their charts look better to the downside though with the SPY the weakest and the IWM and QQQ a bit stronger on the longer timeframe. Use this information as you prepare for the coming week and trad’em well.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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