5 Trade Ideas for Monday: Altaba, Broadcom, Home Bancshares, Landstar & United Rentals

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

Altaba, Ticker: $AABA

Altaba, $AABA, has quietly run higher all year off of a low in December. It moved above the tight 20, 50, 200 day SMA’s (often a point of inflection) in January and rode the 20 day SMA higher ever since. Two weeks ago the former Yahoo started a pullback that broke that 20 day SMA and continued down to the 50 day SMA for the first time since January. But Friday saw a reversal of that, breaking the bull flag to the upside. The RSI is also turning up and the MACD stopped and kinking higher. Look for continuation to participate higher…..

Broadcom, Ticker: $AVGO

Broadcom, $AVGO, also started higher in January, reaching a double top in August. it rolled lower from there crossing the 100 day SMA in September and making a series of lower highs. Last week that ended with the first higher high Friday. The RSI is also making a higher high and the MACD positive as it drifts higher. Look for continuation to participate higher…..

Home Bancshares, Ticker: $HOMB

Home Bancshares, $HOMB, pulled back from a top in March, finding support in June. The bounce from there was strong but short lived lasting less than a week before consolidating and falling again. This time it found support in September, bounced and has a longer run back higher. That ended 2 weeks ago and it sped lower again. Last week ended with the stock moving back higher though. The RSI also is moving back up and the MACD leveling. Look for continuation to participate higher…..

Landstar, Ticker: $LSTR

Landstar, $LSTR,fell back to its 200 day SMA in August, and then after making a double bottom started higher into September. That move topped at the beginning of October and pulled back slightly. Last week saw it move back to the prior high. It has a RSI that is moving higher and a MACD about to cross up. Look for a push over the prior high to participate…..

United Rentals, Ticker: $URI

United Rentals, $URI, pulled back to its 200 day SMA in June. It had a weak bounce higher off of it to a lower high in July before pulling back to the 200 day SMA again, where it had joined the 50 and 100 day SMA’s. These crosses are often an inflection point and it acted this way for United Rentals. It moved higher to a peak last week and then pulled back slightly. Friday it broke a mini-channel to the upside. The RSI is moving higher after resetting lower in the bullish zone and the MACD is stopping its fall and positive. Look for continuation 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 heading into the last days of October the equity markets look.

Elsewhere look for Gold to continue lower in the short run while Crude Oil looks for new 52 week highs. The US Dollar Index has renewed strength and looks to continue higher while US Treasuries are biased lower but at long term support. The Shanghai Composite continues to make higher highs as it approaches 2 year highs and Emerging Markets are holding on a retest of break out levels.

Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts also look better higher on both the short and intermediate timeframe, though the IWM may need a kick in the pants to get out of consolidation. 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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