5 Trade Ideas for Monday: Conagra, Southwest, Momo, Schwab and Stericycle

• Posted by Greg Harmon
• on October 25th, 2020

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

Conagra Brands, Ticker: $CAG

Conagra Brands, $CAG, rose from a March low and topped out in August. It pulled back to revisit the prior consolidation area and then rose again. It is now back the highs with the RSI rising and the MACD turning up to avoid a cross down. Look for a push over resistance to participate…..

Southwest Airlines, Ticker: $LUV

Southwest Airlines, $LUV, made a low in May and then quickly bounced up to a June high. It pulled back to the 50 day SMA and held there in consolidation before a second touch at that June high and another pullback. it is now at the June high again with the RSI rising and bullish and the MACD lifting from zero. Look for a push over resistance to participate…..

Momo, Ticker: $MOMO

Momo, $MOMO, fell from a plateau and found support in September. it has consolidated since under resistance. The RSI is diverging to the upside with the MACD doing the same. Look for a push over resistance to participate…..

Charles Schwab, Ticker: $SCHW

Charles Schwab, $SCHW, bottomed in March and then consolidated. It soared higher in June but stalled prior to retesting the top. Another pullback found support and consolidated until it started higher again into October. It is now moving higher with the RSI deep into the bullish zone and the MACD positive and rising. Look for continuation to participate…..

Stericycle, Ticker: $SRCL

Stericycle, $SRCL, rose from a March low and continued to a top in June. It fell back to the SMA’s and then bounced, returning to the prior high. It retraced modestly and then reversed to the current top where it is consolidating. The RSI is rising in the bullish zone with the MACD positive and starting to move 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 which with one week left before the election, saw equity markets were consolidating with minor retrenching. They were not showing signs of nervousness around the outcome.

Elsewhere look for Gold to continue its pullback in the uptrend while Crude Oil consolidates in a broad range. The US Dollar Index continues to drift to the downside while US Treasury prices are in a downtrend. The Shanghai Composite looks to continue to consolidate while Emerging Markets remain in an uptrend.

The Volatility Index looks to remain in moderate territory, neither helping nor hurting equity markets. Their charts are in consolidation on the shorter timeframe and pausing in the uptrends on the longer frame. On the shorter timeframe the IWM is holding up best with both the QQQ and SPY pulling back in bull flags. 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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