As major US averages continue to trend strongly to the upside, new individual stock setups are surfacing on a daily basis.
Below are 3 bullish trade ideas shown on a long-term monthly time-frame to best illustrate the bigger picture.
My preference is to use monthly/weekly charts to confirm the trend, and discover major price levels, and then dive into a daily chart to refine my entry and get involved in a trade.
The following charts have been taken from my personal leadership watch-list.
First stock up is Citigroup (C) which has displayed some nice relative strength over recent weeks holding up near YTD highs while the Financial sector XLF has pulled back over 6% from its highs, and settled into a more vulnerable range. If the financial sector does, in fact, stabilize and gets some rotation over the coming day or weeks, Citigroup seems poised to lead the charge higher.
Commvault (CVLT) is a small cap stock in the tech sector that is in the process of emerging from a multi-year bottoming pattern (inverted head and shoulders for you pattern traders). It’s recently broken above resistance dating back to 2014 and doesn’t seem to have much immediate overhead supply to slow this breakout down. This is a position subscribers and I recently established on Tuesday June 6th and continue to hold it long.
Delta Air Lines (NYSE:DAL)
Finally, we have Delta Air Lines (DAL) which is in the process of emerging from a range dating back to 2015. Airlines have been working in this environment and Delta is the latest to join the club for an upside breakout attempt.
As always, the execution and timing around any possible trades are left to you as the trader, but hopefully, these charts help point you towards some favorable reward to risk scenarios.
Check out more of my chart analysis over at The Trade Risk. Thanks for reading, and good luck out there.
The author holds a position in CVLT at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.