5 Trade Ideas for Monday: Amneal Pharmaceuticals, Commerce Bancshares, Eli Lilly, Marathon Petroleum & Phillips 66

Amneal Pharmaceuticals, Ticker: $AMRX

Amneal Pharmaceuticals, $AMRX, topped in September last year and started to move lower. It found support at the 200 day SMA and bounced, but to a lower high. It held there over the 200 day SMA for 2 months, building falling trend resistance before a dump into May. That was followed by another test of resistance and pullback to a higher low. The next test of that falling resistance did not hold and it broke to the upside. Now it has made a higher high and testing 4 month resistance. The RSI is bullish and rising with the MACD also moving higher and positive. Look for a push higher to participate…..

Commerce Bancshares, Ticker: $CBSH

Commerce Bancshares, $CBSH, has moved steadily higher after breaking out of consolidation in November. It peaked in July after earnings and pulled back to its 50 day SMA. Now it has reversed back to resistance. The RSI is in the bullish zone with the MACD crossed up and rising. Look for a new high to participate…..

Eli Lilly, Ticker: $LLY

Eli Lilly, $LLY, started higher in February, crossing the 200 day SMA and staying there in May. Since then it has skyrocketed higher. For the last week it has been consolidating, awaiting the next move. The RSI is deep into overbought territory with the MACD leveling at highs. Look for a break of consolidation to participate…..

Marathon Petroleum, Ticker: $MPC

Marathon Petroleum, $MPC, started higher in September and continued to a January peak. It pulled back from there to the 100 day SMA in February before making another surge higher. This met resistance at the end of April. Since then it has pulled back 3 times, each finding support and reversing back to resistance. The RSI is in the bullish zone with the MACD flat and positive after reaching resistance again. Look for a push to a new high to participate…..

Phillips 66, Ticker: $PSX

Phillips 66, $PSX, broke above consolidation in April and quickly ran to a top in May. It had a drawn out pullback from there to a low that lasted 1 month into the middle of July. Since then it has moved back higher and is now consolidating at the prior high. The RSI is working off an overbought condition during the consolidation with the MACD flat. Look for a break of consolidation to participate…..

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 August Options Expiration week, sees the equity markets continue to look strong on the longer timeframe, but may need a rest in the short run.

Elsewhere look for Gold to possibly pause in its downtrend while Crude Oil bounces at support after a pullback on the uptrend. The US Dollar Index is breaking out to the upside and looks strong while US Treasuries are bouncing in consolidation. The Shanghai Composite may be ready to pause in its downtrend while Emerging Markets continue lower.

Volatility looks to remain low but creeping up into the teens removing the aid it has been giving to equities. The equity index ETF’s SPY, IWM and QQQ, all look strong on the weekly timeframe. But on the shorter charts the SPY may continue the short term pullback along with the QQQ while the IWM consolidates at the highs. 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.