5 Trade Ideas for Monday: Allot, Cummins, Dollar General, Olin and PayPal

• Posted by Greg Harmon
• on September 20th, 2020

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

Allot, Ticker: $ALLT

Allot, $ALLT, rose to a top in May from a March low. It pulled back slightly and digested before a retest at that top in August. Since then it has moved to a lower low and consolidated. Friday it pushed of the top of the consolidation zone. The RSI is rising again and the MACD about to cross up. Look for continuation to participate…..

Cummins, Ticker: $CMI

Cummins, $CMI, rose from a March low and did not pause until crossing the 200 day SMA. It pulled back to test it as support twice before another leg higher to a top in August. it has consolidated under resistance there since. The RSI is moving higher in the bullish zone with the MACD flat after a pullback. Look for a push over resistance to participate…..

Dollar General, Ticker: $DG

Dollar General, $DG, rose quickly from a March low into mid-April. It slowed from there but has continued higher since. It made a top in August and pulled back but has since reversed and made a new all-time high Friday. The RSI is rising and bullish with the MACD moving higher. Look for continuation to participate…..

Olin, Ticker: $OLN

Olin, $OLN, bottomed in March and then bounced. it stalled as it hit the 200 day SMA and pulled back. After regrouping it rose again only to stall at the 200 day SMA again and retreat. It held over support at lower levels then making its first higher high Friday. The RSI is rising in the bullish zone with the MACD moving higher. Look for continuation to participate…..

PayPal, Ticker: $PYPL

PayPal, $PYPL, started higher in March and continued to a top in early September. It has pulled back from there and comes into the week at the 100 day SMA. The RSI is into the bearish zone with the MACD negative and dropping. Look for a break out to participate…..

Up Next: Bonus Idea

The Best

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 September options expiry ended sees equity markets pulled back after an early start higher.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil moves higher in the short term. The US Dollar Index looks to continue to consolidate the recent drop while US Treasuries mark time after pulling back slightly in their uptrend. The Shanghai Composite looks to remain in broad consolidation while Emerging Markets consolidate under long term resistance.

The Volatility Index looks to continue the broad trend drifting lower making the path easier for equity markets to the upside. Their charts look weak though, especially the QQQ and SPY. Both are moving lower in both timeframes. The IWM is outperforming both, stable in the short run, and rising in the longer timeframe. 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.

blog comments powered by Disqus