It's Opening Day on the Diamond, so I thought I would go around the horn with nine starters worth a follow this week based on their weekly charts.
Boston Scientific (BSX) comes out of the gate fighting a double top here at $19, but the pieces are in place for a breakout. We have a strong RSI plus the MACD has crossed over bullish. I would like to see the Vortex Indicator (VTX) cross as well. The shorter-term nine-week simple moving average (SMA) will probably require another two weeks here to get above the 17-week SMA unless BSX sees a continued push this week. Support coming around $16.80, but I'd be neutral if we closed under $18 on the week.
Cognizant Technology Solutions (CTSH) is a bit more aggressive here. Neither the RSI nor the MACD has been very convincing, although a bullish VTX has been very favorable in the past. The target here is a retest of the $70 area as the stock shakes off resistance from a bearish channel and now follows a support line currently at $60 on the way up. I'd prefer to see some confirmation with a turn higher in the SMAs here, but for a more aggressive investor this one is worth a watch as long as we remain over $60.
Extra Space Storage (EXR) sound boring, but this is a beautiful chart. After a short consolidation cup, price broke out last week pulling MACD with it and confirming what the VTX already said: we're bullish. Simply watch $90 and expect the nine-week SMA to cross higher this week. This one looks headed to $100.
Lockheed Martin (LMT) faces a similar double top as BSX. I believe the picture is a bit stronger here as we have a MACD, a VTX and the moving averages already in bullish mode. Momentum could be a tad stronger, but over $225 and we should be set up for $245 before the end of the end. Should see trade under $215, then I want nothing to do with this one on the long side.
Microsoft (MSFT) might be the dinosaur of the lineup, but toss it behind the plate to hold down the fort here. The stock is pushing out of this V pattern. But patience might be required before accepting the signals here as nothing has pushed bullish yet outside of RSI and even that indicator trails recent highs. I would watch this one and wait for another push before taking the setup, otherwise you might quickly find yourself at $53.
MSCI (MSCI) has put together everything MSFT is waiting on. The MACD crossed bullish this week. Price has broken out along with the MACD and above the resistance of the V pattern. RSI could be a bit stronger, but it, like the SMAs, is moving higher. If I had a concern here it would be the VTX, But with the other pieces in place, this is one of the strongest setups for the week. I will look to be a buyer on any retest of $73 or continued strength this week.
The top of my watchlist also contains Sabre (SABR) as we saw a triumphant of indicators cross bullish this week ahead of price. The MACD, SMAs and VTX all crossed bullish this week and the RSI is heading higher in bullish territory. Price needs to break $30 here, but as long as we remain over $27 I expect SABR to spend the rest of the spring and summer in the $30s.
The last two on the list, Terra Nitrogen (TNH) and Hain Celestial Group (HAIN), are probably the most aggressive names in the bunch. Neither is pushing recent highs, so traders in these names are betting on a recovery. TNH broke out last week following the path the MACD and VTX set into motion a few weeks back. The RSI is the real attention grabber here as this looks like it is setting up for a big push. The SMAs crossed bullish a few weeks back and as long as TNH stays over $105, this looks like a buy. I would like to see a small pullback, but nothing below $107.
HAIN isn't as strong technically here. In fact, it is similar to MSFT except price has been much weaker. Should we get an RSI push over 50 here and price in this $42 area, I would be willing to give HAIN a shot with a $2-$3 stop on price, simply based on risk tolerance. I would maintain a tighter stop based on the overall makeup of a portfolio. A portfolio already heavily weighted bullish should take a more conservative approach while those waiting for entrance triggers might want to permit a wider stop.
This is my longer-term watchlist of top names heading into the week. But I don't have any positions in this group yet.