Trade of the Week
Financial Setting Up for Flag Breakout
Goldman Sachs (GS) shares consolidating in a bull flag above the 8-EMA and around monthly POC at $413.75 with multi-month highs just above at $420.75. The monthly value high is sitting right around $420 and a breakout higher could catch a nice move and continuation of...
Apparel Stock Setting Up for Breakout to New Highs
Abercrombie & Fitch (ANF) shares consolidating in a bull flag under the monthly value high and a series of narrow weekly closes has made a nice right side of an inverted head-and-shoulders with room to run back to 52-week highs. Shares pulled back to the 38.2%...
Seasonal Stock Setup: Industrial Powering Higher into November
Eaton Corp (ETN) - The industrial sector rebounded strong Thursday as CAT rallied after its earnings report. XLI Industrials have a strong seasonal bullish bias in November with the ETF being higher 10 out of the last 10 years with an average return of +4.76%. With...
ETF Sector Relative Strength Corner: Constructing a Squeeze Higher
Home Construction (ITB) The Homebuilder and Construction sector has been forming a large weekly bull flag as it coils for a push to new highs. The group has shown solid relative strength this year still being up nearly 30% YTD and held its recent pullback to the 200...
Online Platform Poised for New Highs
DoorDash (DASH) shares flagging above the 8- and 21-EMA last week after working higher off the 55-EMA base and poised for new highs. A breakout move targets $227.50 in the near-term but sustained move above that level has a lot of upside out to $260-$270. DASH sees a...
Solar Stock Setting Up for Short-Term Breakout
First Solar (FSLR) shares flagging above the rising 21-EMA and above the monthly value with potential for a strong breakout move as the strong sector continues its recent move. Shares have been in a big rising channel since the May lows and current range targets a...
Seasonal Stock Setup: Shipping Powerhouse with Seasonal Holiday Strength
Fedex (FDX) - The transports stocks have been correcting lower since the summer but have recently perked up with rails, and airlines stronger. The shippers like UPS and FDX are basing out after deep pullbacks from late Spring highs and recently held up well to start...
Seasonal Stock Setup: Wholesale Leader Bull Wedge Setup Into Strong November
Costco (COST) - The retail stocks have recently held up well after consolidation of 2021 gains. Costco specifically sold off back to its 55 EMA into early October as the market pulled back. Last week COST formed an inside week candle and seems to have found buyers at...
Credit Spread of the Week: Digital Payments Processor Shows Attractive Value
Square (SQ) - Square has been retracing some of its summer rally since August with the weakness in growth stocks overall but after holding its 61.8% fib retracement looks poised to form a base and resume higher. The stock has largely been in a wide sideways range in...
E-Commerce Platform Setting Up Well for Weekly Breakout to New Highs
Etsy (ETSY) shares forming a nice, narrow seven-week consolidation under $225-$227 range and near a major breakout to new all-time highs around $240. The current weekly range measures out to $265 but ETSY has a long-term measured target out to $320. On the daily,...