Here are the Rest of the Top 10:
Agrium (NYSE:AGU)
Agrium consolidated over support just over 100 after moving there in January. It had one failed breakdown attempt in July, which resulted in a lower high. The RSI is falling now into the bearish zone, while the MACD is crossing down. Now it is falling again, with a strong down day Friday to the point of that failed July breakdown. A move below that level can be shorted for more downside.
Blackstone Group (NYSE:BX)
Blackstone Group peaked in May near 43 and has been pulling back since. Friday it touched near 33, a 23% pullback, but printed a hammer candlestick, a potential reversal. This needs to be confirmed by a higher close Monday. The RSI has hit oversold territory, with the MACD falling to its lowest level since 2008. This might trigger a bounce or a big reversal.
Rockwell Collins (NYSE:COL)
Rockwell Collins moved from a low at 72 in October 2014 to 99 in May. Since then it has pulled back to 83 and had a small bounce. This is near a 61.8% retracement of the leg higher. The RSI is falling and bearish, while the MACD is about to cross down. Looks like the Dead Cat Bounce may turn into something bigger to the downside.
Darden Restaurants (NYSE:DRI)
Darden Restaurants has had a long run higher from last fall. Now it is testing support at 70 though, and moving lower after a lower higher last week. The RSI is testing the edges of the bullish zone, while the MACD is falling fast. A break of support could lead to a retest of the May low.
Edwards Lifesciences (NYSE:EW)
Edwards Lifesciences broke below the neckline of a Head and Shoulders top and support at 141.70 on Friday. It also dropped under rising trend support. A double whammy. The RSI is falling and now in the bearish zone, with the MACD falling as well, both supporting more downside. Look for continuation lower and with a natural stop 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, heading into the last full week of August, sees the Equity markets looking horrible, ready for more downside.
Elsewhere, look for gold to continue in its uptrend, while crude oil continues lower. The US dollar index is consolidating sideways with a downward bias, while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets are biased to the downside with risk of the Chinese market running sideways in consolidation.
Volatility looks to remain elevated above the prior stable period, but usually does not hold these levels long. This will keep the bias lower for the equity index ETF’s NYSE:SPY, NYSE:IWM and NASDAQ:QQQ, in the short run. Their charts suggest the downside move is not over, but all are very oversold and could see short term bounces early in the week. Use this information as you prepare for the coming week and trad’em well.
Disclaimer: 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.