Top Trade Ideas for the Week of November 25, 2019: The Rest Premium

• Posted by Greg Harmon
• on November 24th, 2019

Here are the Rest of the Top 10 with Premium Content in Bold:

AmerisourceBergen, Ticker: $ABC

AmerisourceBergen, $ABC, rose from an April low to a peak in July. The pullback from there found the 200 day SMA and then reversed. Last week it made a higher high, with the RSI rising in the bullish zone and the MACD positive and moving higher. Look for continuation to participate. The break over resistance gives a target on an AB=CD pattern to 103.40. The Bollinger Bands® opening say the time for a move is now. There is resistance at 91.85 and 94.60 then 101.15 and 106.30. Support lower comes at 90 and 87.80 before 84.25. Short interest is moderate at 4.7%. Enter long on a move over 90.75 with a stop at 89. As it moves over 91.75 move the stop to break even and then to a $1.75 trailing stop over 92.50. As an options trade consider the December 91 Calls (offered at $2.20 late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target).

Ally Financial, Ticker: $ALLY

Ally Financial, $ALLY, ran up to a top in July before a pullback. It made a second move higher to a September top and then pulled back again. Since then it has been in a tight consolidation. The RSI is rising into the bullish zone with the MACD crossed up and about to turn positive. Look for a break higher to participate. The move up to the top of resistance Friday was on very large volume. There is resistance at 32.50 and 34 then 35.25. Support lower comes at 31.10 and 30.50 before 29.90. Short interest is low at 2.6%. Enter long on a move over 32.50 with a stop at 31.75. As it moves over 33.75 move the top to break even and then to a $1.50 trailing stop over 34. As an options trade consider the December 33 Calls ($1.05) and trade them like the stock trade.

Capital One, Ticker: $COF

Capital One, $COF, made a top in July and then gapped lower. It bottomed in the pullback shortly after reaching the 200 day SMA and reversed to a lower high. Another drop also stopped just below the 200 day SMA and reversed. It stalled at the July high and has consolidated. The RSI is rising in the bullish zone with the MACD level and positive. Look for a push over resistance to participate. The Bollinger Bands have squeezed in and with the solid move higher Friday continuation would give a target to 112. There is resistance at 98.20 and 100 then 101.30 and 103.30 before 106. Support lower comes at 96.25 and 94.40. Short interest is low at 1.1%. Enter long on a move over 98.40 with a stop at 96.40. As it moves over 99.75 move the stop to break even and then to a $2 trailing stop over 100.40. As an options trade consider the December 98.50 Calls ($1.91) and trade them like the stock trade.

Electronic Arts, Ticker: $EA

Electronic Arts, $EA, rose from a bottom in December, but only marginally, stalling in February. Since then it drifted slowly lower for 6 months before rounding to the upside slowly. It has a RSI rising into the bullish zone with the MACD positive and lifting. Look for a push higher to participate. The move Friday took the price over falling trend resistance and horizontal resistance. There is resistance higher at 100.25 and 103.15 then 104.80 and 107.70. Support lower comes at 98 and 96.25 before 94 and 92.40. Short interest is low at 2.6%. Enter long on a move over 100 with a stop at 98.50. As it moves over 101 move the top to break even and then to a $2.25 trailing stop over 102.25. As an options trade consider the December 100 Calls ($2.40) and trade them like the stock trade. Sell the December 6 Expiry 102 Calls (73 cents) to lower the cost.

Eli Lilly, Ticker: $LLY

Eli Lilly, $LLY, started higher in December reaching a top in March. Since then it retraced the full move up and churned in a wide channel. It ended the week at the top of that channel with the RSI rising into the bullish zone and the MACD positive and moving higher. Look for for a push over the channel to participate. The 38.2% retracement level and 200 day SMA have combined to offer strong resistance, but the price peeked over both Friday. There is resistance at 116.50 and 118.75 then 120 and 122.65 before 125.35. Support lower comes at 114.40 and 112.50 before 111.30. Short interest is low at 1.2%. Enter long on a move over 116.75 with a stop at 114.75. As it moves over 117.75 move the stop to break even and then to a $2.25 trailing top over 119. As an options trade consider the December 117 Calls ($2.23) and trade them like the stock trade.

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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 shortened Thanksgiving week gave equity investors a lot to be thankful for with stock prices sticking near all-time highs.

Elsewhere look for Gold to continue the pullback while Crude Oil rises in consolidation. The US Dollar Index looks to continue to drift higher while US Treasuries bounce in their downtrend. The Shanghai Composite is pulling back in consolidation while Emerging Markets mark time moving sideways at resistance.

Volatility remains very low keeping the bias to the upside for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ both sit above the 20 day SMA’s and look strong after a digestive week while the IWM continues to churn in a wide consolidation. Use this information as you prepare for the coming week and trad’em well.

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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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