5 Trade Ideas for Monday: Ciena, Fifth Third, Horizon Therapeutics, KeyCorp and Vulcan Materials

• Posted by Greg Harmon
• on July 26th, 2020

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

Ciena, Ticker: $CIEN

Ciena, $CIEN, started to work higher in March and then paused at the start of June. It has consolidated there under resistance since. The RSI is rising in to the bullish zone with the MACD crossed up and positive. Look for a push over resistance to participate…..

Fifth Third, Ticker: $FITB

Fifth Third, $FITB, slowly started to turn down in December. It bounced off of its 200 day SMA at the end of January and then started to accelerate lower upon breaking below the 200 day SMA in February. It made a low in March and started to move back higher. It got knocked back at the 200 day SMA in June and has found support and been consolidating for the past 3 weeks under short term resistance. The RSI is rising through the mid line with the MACD crossed and about to turn positive. Look for a push over resistance to participate…..

Horizon Therapeutics, Ticker: $HZNP

Horizon Therapeutics, $HZNP, started higher in March and ran until late May. It had a slight retracement and then continued higher. The recent top last week was followed by a pullback Friday, printing a hammer reversal candle. The RSI is leveling after a pullback in the bullish zone with the MACD flat and positive. Look for confirmation of the reversal to participate…..

KeyCorp, Ticker: $KEY

KeyCorp, $KEY, bounced off of a March low and then struggled to move into the March gap. It finally broke higher in June but stalled and pulled back. It is rounding out now with the RSI rising toward the bullish zone and the MACD crossed and about to go positive. Look for a push higher to participate….

Vulcan Materials, Ticker: $VMC

Vulcan Materials, $VMC, stalled on a bounce off of a March low when it touched the 50 day SMA in April. It consolidated and then started moving higher again in May. It started to consolidate again when it reached the 200 day SMA in June and has held there since. The RSI is rising in the bullish zone with the MACD slowly moving higher. Look for a push over resistance to participate…..

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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 ahead of the last week left in July, filled with reports from the market leaders as well as a preliminary print on the 2nd quarter GDP number and expiring COVID-19 benefits. With all this looming overhead Equities have barely given up any ground.

Elsewhere look for Gold to continue higher while Crude Oil consolidates in a narrow range. The US Dollar Index continues to move to the downside while US Treasuries advance towards their all-time highs. The Shanghai Composite looks to continue the move lower in broad consolidation while Emerging Markets consolidate in the February gap.

The Volatility Index looks to continue to drift low making the path easier for equity markets to the upside, but at a snail’s pace. Their charts also are becoming mixed after a long stretch of moving in unison. On the shorter timeframe both the QQQ and SPY are pulling back to support and from resistance, resetting momentum gauges. The IWM is holding firm though. On the longer timeframe the IWM and SPY have stalled short of their prior highs while the QQQ sees some profit taking. 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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