5 Trade Ideas for Monday: Charles River Laboratories, Ellie Mae, Fiserv, Oshkosh and Shopify
- Posted by Greg Harmon
- on April 15th, 2017
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Charles River Laboratories, Ticker: $CRL
Charles River Laboratories, $CRL, broke above its 20 day SMA in December, as it started to move higher. It took a couple of steps up and then had a gap up in February to a plateau it has held ever since. Last week it created a tight range against that support and made contact again with its 50 day SMA. The RSI is holding in the bullish zone while the MACD is about to break into negative territory. The question is whether it will bounce here or continue lower. Let it tell you and then tag along…..
Ellie Mae, Ticker: $ELLI
Ellie Mae, $ELLI, got crushed following the election, dropping over 20% in just 3 days. It settled in a channel, consolidating, for 3 months after that before starting higher. The first leg up recovered 61.8% of the move and then it pulled back. A second leg took it to the current level where it has held in a tight consolidation. The RSI is in the bullish zone and the MACD is positive, but looking to cross down. Look for a break of the consolidation to follow along…..
Fiserv, Ticker: $FISV
Fiserv, $FISV, gapped lower in October following earnings and has been trending higher since. The last leg topped in March and after a quick pullback, bounced to settle into the current consolidation. The RSI is pushing lower through the mid line, but not out of the bullish zone yet, while the MACD may be avoiding a positive cross and reversing lower. Mixed signals about the future. Look for price to break the range and show you which way to follow…..
Oshkosh, Ticker: $OSK
Oshkosh, $OSK, moved higher out of consolidation following the election. It made a higher in early December and has been consolidating in a tightening range ever since. Last week ended with a move toward the bottom of the range. The RSI is holding in the bullish zone for now but falling toward the edge, and the MACD is flat at zero but about to cross down. Look for a break of the range to participate…..
Shopify, Ticker: $SHOP
Shopify, $SHOP, started higher out of consolidation in January. It has had a couple of minor pullbacks since but trended higher. Last week ended with it moving up off of consolidation. The RSI is bullish and rising while the MACD is leveling after a pullback. 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 Thursday which with Easter now behind and April options Expiration ahead, sees equity markets looking a bit weaker short term as they give up some ground.
Elsewhere look for Gold to continue in its uptrend while Crude Oil also moves higher. The US Dollar Index has moved into broad consolidation while US Treasuries are biased higher short term and may be reversing. The Shanghai Composite looks to continue to drift higher as Emerging Markets consolidate their recent move up.
Volatility looks to remain low, but higher than it has been and with a short term bias to continue up. This alone should not be enough to put a damper on equities but could contribute. The equity index ETF’s SPY, IWM and QQQ, all look ready to continue to give ground in the short run. In the intermediate view they are all stronger with the QQQ strongest and IWM next and the SPY the least positive. 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.blog comments powered by Disqus
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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