5 Trade Ideas for Tuesday: AIG, Ashland, BioMarin, Encompass Health and the Bancorp

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

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

AIG, Ticker: $AIG

AIG, $AIG, was in a long consolidation when it broke to the downside in February. It dropped quickly, giving up over 65% of its value in a month before finding support. It bounced then fell back to a higher low in April and has been tightening consolidation since. The RSI is on the edge of a move into the bullish zone with the MACD rising and positive. Look for a push over resistance to participate…..

Ashland, Ticker: $ASH

Ashland, $ASH, started lower in February, and reached a bottom in mid-March. Since then it has moved higher, until encountering resistance at the end of April. it has consolidated there since. The RSI is on the edge of the bullish zone with the MACD lifting and positive. Look for a push over resistance to participate…..

BioMarin Pharmaceutical, Ticker: $BMRN

BioMarin Pharmaceutical, $BMRN, started higher in March, and broke above the February high a month later. It pulled back to the 20 day SMA and bounce. Since then it has been consolidating under resistance. The RSI is rising in the bullish zone with the MACD turning to cross up. Look for a push over resistance to participate…..

Encompass Health, Ticker: $EHC

Encompass Health, $EHC, bottomed in March and then reversed higher. It stalled as it reached the 50 day SMA and pulled back. Last week it moved back higher and ended consolidating the move. The RSI is flat in the bullish zone with the MACD rising and positive. Look for a push over resistance to participate….

The Bancorp, Ticker: $TBBK

The Bancorp, $TBBK, fell from a double top in March and reached a bottom 2 weeks later. Since then it has been moving higher and has now reached resistance. The RSI is rising towards the bullish zone with the MACD turning up and positive. 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 heading into the Memorial Day Weekend and unofficial start of summer, sees equity markets posted a strong week with signs of potential range breaks to come.

Elsewhere look for Gold to continue to consolidate while Crude Oil moves to the upside. The US Dollar Index continues to churn sideways while US Treasuries consolidate as well. The Shanghai Composite looks to be reversing lower while Emerging Markets consolidate under resistance.

The Volatility Index looks to remain elevated and drifting lower easing the roadblocks in front of equity markets. Their charts are looking a bit stronger on the shorter timeframe and possibly on the edge of breaking consolidation to the upside. The one exception to this is the QQQ which is in a full blown uptrend. On the longer timeframe all 3 Index ETF’s look strong. 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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