5 Trade Ideas for Monday: Alcoa, Alexion Pharmaceutical, Andeavor, Comerica & Kansas City Southern

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Alcoa, Ticker: $AA

Alcoa, $AA, started higher in June, moving higher in a couple of steps. It topped in October and then fell back, breaking down through both the 50 and 100 day SMA’s. It has been consolidating since early November under the 100 day SMA in a rounding bottom. Friday it was running back to the top of consolidation and has a rising RSI and a MACD crossed and moving up to support more upside. Look for a break over resistance to participate higher…..

Alexion Pharmaceutical, Ticker: $ALXN

Alexion Pharmaceutical, $ALXN, took a hard dive lower to end October. That found support into November a t a higher low and ran sideways. Two weeks ago it gapped up, and has consolidated there under resistance. The RSI is rising through the mid line while the MACD is about to cross to positive. Look for a push over resistance to participate higher…..

Andeavor, Ticker: $ANDV

Andeavor, $ANDV, started a path higher in April. It paused and pulled back in August only to reverse higher again. That move took it to a top in early November. It pulled back again, to the 50 day SMA again, and started back higher 2 weeks ago. It stalled at the prior high last week and reversed to a higher low, before ending back at the high. The RSI is rising and bullish while the MACD is moving higher. Look for a break above resistance to participate higher…..

Comerica, Ticker: $CMA

Comerica, $CMA, moved up off of a low in September, finding resistance in October. It pulled back to its 50 day SMA and the reverse in a second leg higher, to resistance where it is currently consolidating. The RSI is bullish and turned back higher with the MACD avoiding a cross down. Look for a push over resistance to participate higher…..

Kansas City Southern, Ticker: $KSU

Kansas City Southern, $KSU, went through a long sideways consolidation beginning in June. It broke that to the upside in November leading to a new 2 and a half year high at the beginning of December. Since then it has pulled back in a bull flag and is now at the 20 day SMA. The RSI is in the bullish zone while the MACD is crossing down. Look for a break of the flag to the upside to participate higher…..

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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 as Options Expiration and the FOMC meeting pass, sees equity markets looking strong heading into the last full week of trading for the year.

Elsewhere look for Gold to continue to bounce higher while Crude Oil pauses in the uptrend. The US Dollar Index looks to continue to mark time with a downward bias while US Treasuries continue their short term uptrend. The Shanghai Composite remains in a downtrend approaching the long term support and resistance zone while Emerging Markets consolidate in their uptrend.

Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ into the end of the year. Their charts all look strong on the longer timeframe. On the daily timeframe the SPY and QQQ are also strong with the IWM close to a break out if it moves higher. Use this information as you prepare for the coming week and trad’em well.


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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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