After a big week in the markets, traders will be on the lookout for some consolidation, either early in the week or towards the end of the week. This would be normal.
With the latest run higher in the stock market, several stocks are near breakout levels or have broken out in recent days. Patient traders may be rewarded if these stocks see follow through to the upside.
With that said, here are 5 stocks that are on my trading radar for this week. These trading ideas consist of stocks that have good risk-reward setups / patterns (in the making). Remember to always do your own homework and trade with discipline.
5 trading ideas I am watching this week:
1. HOMEINNS HOTEL GROUP ($HMIN):
Homeinns Hotel Group (HMIN) together with its subsidiaries, develops, leases, operates, franchises, and manages hotels for individual business and leisure travelers in China. The stock has formed a tight symmetrical triangle and looks ready to break out over 30.30. The Bollinger Bands are tight and starting to open up. The stock is above all moving averages. MACD is about to cross up while RSI is in the bullish zone. The measured move on the break takes it to approximately 34. The company reports earnings on November 9th.
2. ADT CORP ($ADT):
ADT is trying to break out of a nice descending channel and has formed a bull flag out of the recent move higher off of the early October lows. A break over the flag over Friday’s (October 23rd) highs takes the stock to approximately 37.20 as a measured move. The momentum indicators are bullish. Bollinger bands have opened up already to support the move higher. The company reports earnings on November 11th.
3. JUNO THERAPEUTICS ($JUNO):
JUNO Therapeutics was one of the beaten down stocks and has bottomed well. I had posted this last week but the setup is still valid. The stock is setting up for its next move higher. JUNO has formed a sort of a box, more a sloppy looking bull flag. There has been quite a bit of bullish momentum for the past 2 weeks. The momentum indicators are bullish. The initial move over 51.70 targets approximately 57.50-58.00. Enter long in JUNO only on a hold over 51.70 if you do not have an existing position from much lower. The company doesn’t report earnings until November 11th.
4. CONOCOPHILIPS ($COP):
COP was one of the many Oil/Energy related stocks that got hammered. It lost major support line in July and continued to move lower until it found a bottom in August. The stock has bounced well enough and now into October, COP has formed a bull flag. The measured move of the break out of the flag takes it to 65.10. It has 200 SMA above at 57.77 as resistance along with 60.75 and 62.25 while there is support near the 54.30 and 53 zones. The only caveat to this move is that the stock has earnings report due on October 29th.
5. JINKASOLAR HOLDING ($JKS):
After bottoming in August, Jinkasolar (JKS) has formed a bullish pennant or more a small symmetrical triangle. The stock is looking to breakout over 27.00 with a measured move of approximately 31.20. There has been some big call buying by options traders recently. RSI is in bullish zone while MACD crossed lower but flat and might look to cross up on a break higher. JKS doesn’t report earnings until November 19th.
Thanks for reading and good luck in the week ahead.
The author does not have a position in any of the mentioned securities. 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.