5 Trade Ideas for Monday: Ashland, Clorox, McDonald’s, Northern Trust & Sealed Air

Ashland, Ticker: $ASH

Ashland, $ASH, confirmed a Hammer reversal in May with a gap higher. It continued to a top in the summer. It started to pull back in September, breaking its 200 day SMA before finding support and bouncing. It rose to a lower high earlier this month and has digested the move in a bull flag since. Friday saw signs of breaking the flag to the upside. The RSI is moving back higher in the bullish zone and the MACD level and positive. Look for continuation to participate…..

Clorox, Ticker: $CLX

Clorox, $CLX, rose from a bottom in April, and paused to consolidate in September. It broke that consolidation to the upside in November and has kept going, ending last week with a brief pause. The RSI is rising and bullish and the MACD is avoiding a cross down. Look for new highs to participate…..

McDonald’s, Ticker: $MCD

McDonald’s, $MCD, topped after a strong run at the end of January. It pulled back and sat there, just over 150 for the next 8 months. Then it started higher again in September, retesting the high and pausing in October before continuing. It is pulling back now with the RSI falling in the bullish zone and the MACD crossed down and falling. Look for continuation to participate…..

Northern Trust, Ticker: $NTRS

Northern Trust, $NTRS, made a high on a spike at the end of July. It moved lower from there, accelerating into a bottom in October. It bounced and stalled into November, and has been consolidating since. The RSI is stuck around the mid line with the MACD flat at zero. Look for a break out to participate….

Sealed Air, Ticker: $SEE

Sealed Air, $SEE, consolidated for 4 months just under its 200 day SMA, ending in August with a move lower. It bounced but then dropped further to a low in October. Since then it has bounced and ran back to its 50 day SMA. It consolidated there for a few days until starting higher again Friday. The RSI is rising and bullish with the MACD rising and positive. Look for continuation 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 with Thanksgiving behind and the holiday shopping season in full swing saw the price action in the equity markets casting a dark shadow over the festivities.

Elsewhere look for Gold to continue in its uptrend while Crude Oil continues to move lower. The US Dollar Index is resuming its move higher while US Treasuries are reversing to the upside. The Shanghai Composite may also be reversing higher while Emerging Markets continue to pause in their downtrend.

Volatility remains elevated and has an upward bias which is keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. Their charts all look weak on the shorter timeframe, with the QQQ the worst under the October lows and nearing the February lows. The IWM is nearing 12 month support while the SPY sits at the October low. 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.