4 Trade Ideas for Air Products: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Air Products, $APD, rose off of a March low and continued to a high in June. It paused there and then started a strong move higher in July. It pulled back to the 20 day SMA from there and held with a Hammer reversal candle Friday. If confirmed another leg higher would target 340. The RSI has pulled back from oversold and is holding in the bullish zone. The MACD is moving lower but positive. There is no resistance above 296. Support lower comes at 282.50 and 266 then 252 and 242. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 1.87%.

The company is expected to report earnings next on November 5th. The August options have the biggest open interest at the 280 and 250 strikes on the put side. On the call side it is biggest at 320. In September it is spread form 190 to 250 on the put side but focused at 250 and 270 then 320 on the call side. The December options are the first to cover the earnings report and show open interest from 200 to 230 on the put side, with larger size at 230 then 290 and 310 on the call side.

Air Products, Ticker: $APD

Trade Idea 1: Buy the stock on a move over 290 with a stop at 282.50.

Trade Idea 2: Buy the stock on a move over 290 and add a September 280/270 Put Spread ($4.00) while selling the September 300 Call ($4.60).

Trade Idea 3: Buy the August/December 300 Call Calendar ($14) and sell the August 270 Put ($2.20).

Trade Idea 4: Buy the December 290/320 Cal Spread and sell the 260 Put ($5.00).

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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 with July in the books, saw equity markets showed resilience with a rebound from consolidation.

Elsewhere look for Gold to continue higher while Crude Oil consolidates in a tight range. The US Dollar Index continues to move to the downside while US Treasuries continue their uptrend. The Shanghai Composite is building tightening consolidation while Emerging Markets consolidate in their uptrend.

The Volatility Index looks to continue to drift lower making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe. On the shorter timeframe both the SPY and IWM continue moving up in consolidation. The QQQ looks the strongest moving back toward all-time highs. 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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