5 Trade Ideas for Monday: AstraZeneca, Fortinet, Home Bancshares, Honeywell and Northern Trust
- Posted by Greg Harmon
- on October 30th, 2016
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Here are the Rest of the Top 10:
AstraZeneca, Ticker: $AZN
AstraZeneca, $AZN, went through a bottoming consolidation from February until it broke to the upside in July. The quick move higher met resistance at the December highs and then price started lower. The slow drop accelerated in October and it had a massive drop on Thursday. It ended Thursday with a bottoming lower shadow and printed a second one on Friday, both on large volume. The RSI is oversold and the MACD is at an extreme low. There is potential for a bounce. Look for a move over Friday’s high to participate to the upside…..
Fortinet, Ticker: $FTNT
Fortinet, $FTNT, had been trending higher until it met resistance in late July. It bounced lower from that resistance 3 times with the last one leading to gap lower on strong volume. Since that gap down the stock has consolidated and Friday saw a push to the top of the range. The RSI is rising and the MACD is about to cross up. Look for a break higher to participate to the upside…..
Home Bancshares, Ticker: $HOMB
Home Bancshares, $HOMB, ran higher from the Brexit sell off at the end of June. It stalled at the SMA’s and then continued to the November 2016 high. That was it though. A pullback started from there that found support in October. It started back higher 2 weeks ago, hitting the upper Bollinger Band® Thursday and pulling in. The RSI is on the edge of a move into the bullish zone while the MACD is rising. Look for continuation to participate to the upside…..
Honeywell International, Ticker: $HON
Honeywell International, $HON, started moving higher in January. It met resistance in July but held over 111 for 7 months, before losing it and dropping lower. The price action since the gap down has been consolidating against resistance and has support of a rising RSI and MACD to push through to the upside. Look for that to happen to participate higher…..
Northern Trust, Ticker: $NTRS
Northern Trust, $NTRS, fell hard at the start of the year, to a low in February. It rose from there to a lower high in May before pulling back. That move found support in June and reversed higher. It ended last week at resistance and pressing higher. The RSI is rising and in the bullish zone while the MACD is rising. Look for a push over resistance to participate to the upside…..
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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 week full week before the election the equity markets continue to look troubled on the short timeframe, with the weakness starting to leak into the longer timeframe for the small caps.
Elsewhere look for Gold to drift higher while Crude Oil continues the short term move lower. The US Dollar Index looks ready for consolidation or a pullback short term while US Treasuries are biased lower. The Shanghai Composite looks to continue to drift higher as Emerging Markets are biased to the downside in consolidation.
Volatility looks to remain in the normal range but creeping up so adding a headwind for the equity index ETF’s SPY, IWM and QQQ. Their charts also show short term weakness with the IWM the weakest as it falls and the SPY next but the QQQ still holding near all-time highs. Use this information as you prepare for the coming week and trad’em well.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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