Here is your Bonus Idea with links to the full Top Ten:
First Merit, Ticker: FMER
FirstMerit Corporation (NASDAQ: FMER), moved lower out of a consolidation zone in January when the market pulled back. The price action traced out a bearish Bat harmonic that has a Potential Reversal Zone at 22.88 higher. The move off of the low at point C also carries a Measured Move higher to 23.70 on a break above the current resistance at 22. There is resistance above at 22.75 and 23.45. Support lower comes at 21.15 and 20.65 followed by 19.75 and 19.25. The Relative Strength Index (RSI) is in the bullish range and the MACD is level and positive, supporting the upside.
Trade Idea 1: Buy the stock on a move over 22 with a stop at 21.
Trade Idea 2: Buy the April 22.5 Calls (offered at 30 cents late Friday).
Trade Idea 3: Buy the April 20/22.5 bullish Risk Reversal (22 cents).
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 last full week of the First Quarter sees the equity markets again looking tired. Outside of them directly though look for Gold to consolidate or continue higher while Crude Oil has a similar feel for a reversal in its case. The US Dollar Index is showing strength in the short run while US Treasuries are consolidating tin the short term uptrend. The Shanghai Composite looks good for more upside price action and Emerging Markets look as if they may want to continue the consolidation. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts are not so sure of that though with all 3 consolidating under the highs on the shorter timeframe but the IWM and SPY looking healthy, and a little better than the QQQ on the longer timeframe. Use this information as you prepare for the coming week and trad’em well.
Disclosure: 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.