5 Trade Ideas for Monday: Abbott Labs, Halliburton, McDonald’s, Raytheon & Yum

Abbott Laboratories, Ticker: $ABT

Abbott Laboratories, $ABT, was trending higher and in December accelerated that trend to the upside. It moved outside of its Bollinger Bands® and stalled at the end of January, then pulled back with the market. It found support at the 100 day SMA and started higher. Last week it consolidated the initial move in a bull flag, breaking it to the upside Friday. The RSI is rising off of the mid line with the MACD about to cross up. Look for continuation to participate higher….

Halliburton, Ticker: $HAL

Halliburton, $HAL, started higher in December, reaching a top highlighted by a Shooting Star candle at the end of January. The reversal lower found support at prior resistance 2 weeks ago and has held there. Friday it started to move higher out of consolidation. The RSI id rising again and the MACD is about to cross up. Look for continuation to participate higher…..

McDonald’s, Ticker: $MCD

McDonald’s, $MCD, started moving higher following the Presidential election reaching a top in late January. It pulled back from there with the market and found support at the 200 day SMA. Last week ended with it trying to move up from that support. The RSI is running higher with the MACD about to cross up. Look for continuation to participate higher…..

Raytheon, Ticker: $RTN

Raytheon, $RTN, started higher out of consolidation in January. It also pulled back at the end of the month with the market, retesting the break out area. Since then it has move back higher and closed last week at all-time highs, where it has shown some resistance. The RSI is bullish and rising with the MACD moving higher. Look for a push over resistance to participate…..

Yum Brands, Ticker: $YUM

Yum Brands, $YUM, started higher in March last year, pausing for several months over the summer and fall before a second run up to a top at the end of January. It also pulled back with the market, finding support at its 200 day SMA. The move higher Friday took it over short term resistance and it has support from a rising RSI and a MACD about to cross up for more upside. Look for continuation to participate higher…..

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 the last days of February sees the equity markets have recovered much of the downturn and are looking stronger.

Elsewhere look for Gold to bounce around in a wide range while Crude Oil resumes on the path higher. The US Dollar Index is pausing in its downtrend while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets both look to continue higher.

Volatility looks to continue to drift lower toward the range that held it for the last couple of years, but remaining above it. This is easing the pressure on the equity index ETF’s SPY, IWM and QQQ. Their charts show the QQQ with the strongest recovery and looking to resume the long uptrend. The SPY and IWM are still holding under critical levels and are showing less positive conviction at this point. Another positive week could end that. 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.