Here are current trade setups for buying or selling, and a couple stocks that could see a big move either way.
Since the middle of February, the S&P 500 has rallied, from 1810.01 (on February 11) to 1986.45 on March 2. While short-term momentum is up, there are major resistance levels overhead—primarily starting at 2060, but selling could kick in before then. In this sort of environment big moves in either direction are likely (as opposed to a strong trending market where the big moves favor one direction), so plan some trades for both the long and short side. Here are four stocks with recent trade setups, one favoring a long trade, one favoring a short trade, and two others which could make a move in either direction.
Kimco Realty Corp. (KIM) is trending higher since September when it bottomed at $22.07. The recent February 3 move higher, to $28.08 confirms the uptrend is still intact. Through November and December, the stock moved sideways, breaking above $27 resistance in late January. Mid-February saw the price pullback to this former resistance area, as the price hovered between $27 and $26 for a couple of weeks. With the stock closing at $27.50 on March 2, the next rally may already be starting. Buy orders can still be placed between $27 and $26.60, and may be filled on an intraday fluctuation. A stop loss goes below $26, and the upside target is $29. That target is just above the 2015 high of $28.54. By getting in near $27 the reward:risk on the trade is 2:1; getting in at a higher price reduced the reward:risk, making the trade less attractive.
Ericsson (ERIC) is in a declining trend channel going back to mid-2015. Right now the stock is at the top of that trend channel, where it has a tendency to decline from. Between February 25 and March 2, a consolidation has formed between $9.38 and $9.14. If the price declines below $9.14, that signals the price may start dropping again. If the price continues to rise before dropping below $9.14, the short trade is avoided. If the trade triggers, place a stop loss at $9.45 or above. The target is $8.40, just below the February 9 low of $8.43 and near the bottom of the channel. This trade also provides a roughly 2:1 reward to risk ratio.…read more
Read more here: Uptrend and Downtrend Trade Setups (ERIC, KIM, XYL)
Category: ERIC, KIM, XYL