Here is your Bonus Idea with links to the full Top Ten:
Covidien, Ticker: COV
Covidien (COV), is moving higher off of support at 63.50. Two strong white Marubozu candles to end the week were reinforced by a Relative Strength Index (RSI) that is rising, and making new higher highs as it verges on a move into bullish territory. The Moving Average Convergence Divergence indicator (MACD) has crossed higher and is rising. These support more upward price action. There is resistance at 67 and 68.60, and then free air higher. Support comes lower at 63.50 and 61.70.
- Trade Idea 1: Buy the stock now (over 65.50) with a stop a 64.90.
- Trade Idea 2: Buy the July 65 Calls (offered at $2.15 late Friday) on the same trigger.
- Trade Idea 3: Buy the July 65/70 Calls ($1.95) on the same trigger.
- Trade Idea 4: Buy the July 65/70 Call Spread selling the July 62.5 Puts ($1.50) on the same trigger.
- Trade Idea 5: Buy the July 62.5/67.5 bullish Risk Reversal (45 cents) on the same trigger.
Their charts also show signs of a pullback with the SPY and QQQ both weaker than the IWM. Use this information as you prepare for the coming week and trad’em well.
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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