Top Trade Ideas for the Week of November 18, 2019: The Best

• Posted by Greg Harmon
• on November 16th, 2019

After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with November options expiration in the books sees equity markets surging.

Elsewhere look for Gold to drift lower in consolidation while Crude Oil marks time moving sideways. The US Dollar Index is drifting to the upside while US Treasuries bounce in their pullback. The Shanghai Composite looks to drift down in consolidation while Emerging Markets remain in broad consolidation.

Volatility continues to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ look to continue the march higher while the IWM continues to churn in a wide consolidation at long term resistance. Use this information as you prepare for the coming week and trad’em well.

Alteryx, Ticker: $AYX

Alteryx, $AYX, ran from an October 2018 low to a top in September. It has since pulled back, retracing nearly 61.8% of the move higher and finding support. This closed the gap from June. Since mid-October it has been moving higher against rising support with momentum leading the path higher. The RSI is rising to the mid line with the MACD crossed up and climbing. The Bollinger Bands® have squeezed, often a precursor to a big move. There is resistance at 98.75 and 102 then 111.30 and 115.50. Support lower comes at 91 and 87.50 before 81.25. Short interest is high at 11.9%. Enter long on a move over 99 with a stop at 94. As it moves over 101.75 move the stop to break even and then to a $4 trailing stop over 103. As an options trade consider the December 100 Calls (offered at $4.20 late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target). Give it more time with the February 100 Calls ($9.40) and sell the December 110 Calls ($1.20) to lower the cost.

CBOE, Ticker: $CBOE

CBOE, $CBOE, rose from consolidation in April, making a top in August. It pulled back in a triangle consolidation from there, until it broke that to the upside solidly last week. This gives a target to 130 initially. The RSI is rising and bullish with the MACD lifting into positive. There is resistance at 119.50 and 120.60 then 122.30. Support lower comes at 118.25 and 116 then 113. Short interest is low at 2.3%. Enter long on a move over 119.75 with a stop at 117.50. As it moves over 121 move the stop to break even and then to a $2.50 trailing stop over 122.25. As an options trade consider the December 120 Calls ($2.40) and trade them like the stock trade. Sell the December 110 Puts (40 cents) to lower the cost.

Royal Caribbean, Ticker: $RCL

Royal Caribbean, $RCL, started lower from a top in May, hitting a bottom in August. After a bounce it fell back to retest the low and held. It rose again and confirmed a double bottom as it pushed over resistance Friday. The RSI is rising in the bullish zone with the MACD positive and climbing. There is resistance at 118 and 120 then 122.25 and 124.75 before 125.75 and 129.25. Support lower comes at 116.35 and 115 then 111. Short interest is low at 2.4%. Enter long on a move over 118.25 with a stop at 116. As it moves over 120 move the stop to break even and then to a $2.50 trailing stop over 120.75. As an options trade consider the December 13 Expiry 118 Calls ($2.99) and trade them like the stock trade.

Tractor Supply, Ticker: $TSCO

Tractor Supply, $TSCO, pulled back from a top in July, finding a bottom in September. As it dropped falling trend resistance contained each bounce. Since the bottom, it has risen against trend support. Last week that pushed price through the trend resistance and to the October highs. The RSI is rising into the bullish zone with the MACD positive and slowly rising. There is resistance at 98.50 and 102.25 then 106.40 and 109.40. Support lower comes at 96 and 94.50 then 92.50. Short interest is moderate at 3.9%. Enter long on a move over 98.75 with a stop at 96. As it moves over 100 move the stop to break even and then to a $2.50 trailing stop over 101.25. As an options trade consider the December 13 Expiry 99 Calls ($2.00) and trade them like the stock trade.

Veeva Systems, Ticker: $VEEV

Veeva Systems, $VEEV, started higher from a low in December and topped out in July. Since then it has pulled back, retracing 38.2% of the move and closing the gap from May. Last week it pushed up through falling trend resistance as the tight Bollinger Bands opened. The RSI is pushing higher into the bullish zone with the MACD rising and about to turn positive. There is resistance at 155.60 and 159 then 165 and 170. Support lower comes at 148.50 and 145 then 139. Short interest is low at 2.7%. Enter long on a move over 155.50 with a stop at 150. As it move over 157 move the stop to break even and then to a $3.50 trailing stop over 159. As an options trade consider the December 155 Calls ($6.90) and trade them like the stock trade. Note that the company is expected to report earnings next on November 26th.

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