BP broke the consolidation between 41 and 42 and jumped higher last week to resistance at 44. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) is positive, both supporting more upside price movement.
Gilead Sciences (GILD)
Gilead Sciences (GILD) leaked out of its consolidation zone and found support at the 50-day Simple Moving Average (SMA) before rising back to the top of that zone. With an RSI that is bullish but resting a little lower and an MACD that is about to cross to positive, it is set up to break the consolidation zone higher.
M&T Bank (MTB)
M&T Bank is moving higher and is one of the few bank stocks that does not yet look overbought. It has an RSI that is bullish and rising with an MACD that is positive and growing. Above the previous high it has a Measured Move to 123.
Prudential Financial (PRU)
Prudential Financial (PRU) is moving into a previous resistance zone between 56.50 and the previous high in October. Above that it has room. The RSI is bullish and rising and the MACD is positive and growing, both supporting further upside movement.
Phillips-Van Heusen (PVH)
Phillips-Van Heusen has been consolidating in a box since the beginning of November. Several signs suggest it may be ready to break it higher. The RSI is bullish and rising with a MACD that is positive and increasing with expanding Bollinger bands as it rises to the top of the box.
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 Saturday which, as the financial markets get back to full strength, look for Gold to continue lower while Crude Oil continues higher. The US Dollar Index seems ready to continue higher while US Treasurys head lower, both with a chance that each may consolidate.
The Shanghai Composite and Emerging Markets are biased to the upside with the possibility that each may also rest. Volatility looks to remain low and may continue lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the big moves higher this week. Their charts all look higher as well with the IWM the strongest followed by the SPY and the QQQ pulling back or possibly consolidating. Use this information as you prepare for the coming week and trade’m 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.
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