Which stocks topped our “Steady, Stealthy Trender” Scan this week?
Let’s take a look at four names that made the list and highlight something very similar about them.
In no particular order, we’ll start with Electronic Arts (EA):
Like the broader S&P 500, all of these four selected names are trending higher (though these stocks are strongly outperforming the S&P 500) but are consolidating/ranging at the highs.
Be sure to study this morning’s “Bearish Engulfing at the Highs – S&P 500 Planning” post.
Also like the S&P 500, these names are at support and likely retracing lower to support targets now.
For Electronic Arts specifically (EA), we have a sideways consolidation between $ 54.00 and $ 58.00 with a breakout – and possible trap – region above $ 58.00.
Note the bearish candles into $ 60.00 per share which is taking price likely back inside the rectangle.
A sudden breakthrough beyond $ 60.00 could trigger another buy-signal and bullish impulse trade.
The next three selected stocks will have similar trends and planning levels.
Next up is Cigna (CI):
While the trend continues, note the $ 130.00 per share level for a key inflection point – bearish sell-swing beneath (target $ 125) or bullish support-bounce off it (target $ 135).
It’s more likely to see a swing down to the $ 125 level but keep your focus on $ 130 at the moment.
Aetna similarly reveals a powerful, creeping uptrend on the chart but price is stalling into the $ 110 level.
Note the sideways rectangle as highlighted in March and April and the planning levels on a breakout.
A failure here into the rising 20 day EMA support ($ 107.50) suggests a play down to $ 105 while a pro-trend eventual breakout above $ 110 suggests further upside action for traders.
Amerisource Bergen Corp (ABC):
Finally, ABC similarly has developed a sideways rectangle from March into April and is currently playing off the rising 20 day EMA pivot into $ 113.00.
A breakdown/retracement here (under $ 113) targets the $ 110 level.
Alternatively, a future breakthrough above $ 115 would be a new bullish opportunity similar to the breakout and rally seen in January.
Study the trend in these stocks, the current “make or break” daily support level (the 20 day EMA), and level-planning going forward.
These trends would be expected to continue – as has been the case – until and unless price breaks under the 50 day EMA (blue).
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade