Here is your Bonus Idea with links to the full Top Ten:
F5 Networks (NASDAQ:FFIV), $FFIV, started moving higher in March of 2016. It consolidated for a 5 month period through October before a gap up and run to a topping pattern into April of 2017. From there it pulled back to find support over the prior consolidation box and then in July gapped lower back into that box, retracing 50% of the move higher. It has been there ever since.
From the beginning of October it has touched up against resistance and is sitting there for the third time into the new week. The RSI is rising and bullish and the MACD crossing up. Both support more upside. The Bollinger Bands® have squeezed, often a precursor to a move, and are now opening higher. There is resistance at 124.50 and 126.75 then 131.50 and 134.50 followed by 139 and 143 then 149.50. Support lower comes at 120 and 115.30. Short interest is elevated at 6.9%.
The December options chain shows biggest open interest at the 115 Put and 130 Call Strikes, but both are not large. In the January chain open interest on the Put side is again largest at the 115 Strike and 130 Call Strike, but more spread out to the upside on the Calls. And the April chain, the first covering the January 24th earnings report, has low open interest but it is at the same area, 115 on the Put side and 125 and 130 on the Call side.
F5 Networks, Ticker: $FFIV
Trade Idea 1: Buy the stock on a move over 124.50 with a stop at 120.
Trade Idea 2: Buy the stock on a move over 124.50 and add a December 124/120 Put Spread ($1.60) as protection and selling a January 130 Call ($1.56) to cover the cost.
Trade Idea 3: Buy a January 125/130 Call Spread ($2.09) and sell the January 115 Put ($1.27).
Trade Idea 4: Buy the December/April 130 Call Calendar ($5.25), and look to sell additional short term Calls as the December Calls expire.
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 with November options expiration behind sees the markets driving into the shortened Thanksgiving week with a changing of the guard to the small caps.
Elsewhere look for Gold to continue in its uptrend while Crude Oil works through short term resistance. The US Dollar Index pauses in its short term uptrend while US Treasuries consolidate. The Shanghai Composite is taking a breather in its uptrend and Emerging Markets are consolidating their move higher.
Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). On the shorter timeframe the IWM is now taking the lead as the SPY and QQQ consolidate. In the longer frame they still need to prove themselves a leader as the QQQ and SPY mark time. 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.