4 Trade Ideas for Corning: Bonus Idea

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Corning, $GLW, came out of a base in June and started to move higher. It continued to a top in December, against rising trend support. Since December it has moved sideways in a tightening range, creating an ascending triangle. It is at the top of the triangle as the week starts. The RSI is holding over the mid line with the MACD positive and slowly moving higher. The Bollinger Bands® appear to be shifting up.

There is resistance at 38.75 and then you have to go back to 2001 to find higher at 40 and 49 then 56 and 60. Support lower comes at 38 and 37.50 then 36.30 and 35. Short interest is low at 1.2%. The stock pays a dividend with an annual yield of 2.51% and began trading ex-dividend February 25th. The company is expected to report earnings next on April 26th.

The March options chain shows open interest spread from 36 to 38 on the put side and focused at 40 on the call side. In the April options open interest is light on the put side and large and focused at 40 and 42 on the call side. The may options are the first to cover the earnings event and have open interest build from 38 to a peak at 31 before tailing off lower on the put side. The call side builds from 36 to 40 and holds through 50.

Corning, Ticker: $GLW

Trade Idea 1: Buy the stock on a move over 38 with a stop at 37.

Trade Idea 2: Buy the stock on a move over 38 and add an April 38/36 Put Spread (90 cents) while selling the May 45 Calls (62 cents).

Trade Idea 3: Buy the March/May 40 Call Calendar ($1.30) while selling the April 35 Puts (65 cents).

Trade Idea 4: Buy the May 35/40/45 Call Spread Risk Reversal (5 cents).

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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 the month of February in the books, saw equity markets looking fatigued with a bit of weakness.

Elsewhere look for Gold to continue its downtrend while Crude Oil moves to the upside. The US Dollar Index continues to trend lower while US Treasuries dropped to a 13 month low in their downtrend. The Shanghai Composite looks to pullback in its uptrend while Emerging Markets drop to retest break out levels in their trend higher.

The Volatility Index looks to continue slightly elevated making the path harder for equity markets to the upside. Their charts continue to look strong on the longer timeframe. But on the shorter timeframe both the IWM and SPY are resetting to the 50 day SMA after being extended while the QQQ is showing more weakening. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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