Six Good-Looking Bullish Charts

Janet Yellen produced a snoozer this morning, although her words did goose long-dated Treasuries. We have Mario Draghi around the corner and it's probably not one worth trying to play the pin game. In other words, the little bit of profit left in pin plays is probably worth sacrificing here to avoid the slim chance some words upset or encourage the last few folks manning trades into the weekend. I'd rather look ahead to some potential setups for the next week to few weeks, so I grabbed a few of the best-looking bullish weekly charts from my scans. These are targeted at names just on the verge of breaking out with a step in the right direction this week. I won't try to defend the valuation on Icahn Enterprises (IEP). One would think this would trade closer to net asset value, but it simply does not. After seeing a huge retracement from December 2013 through April 2014, IEP is on the move again. The stock has pushed above an ascending triangle and should target the $118-$120 area quickly, with $125 possible. I'm long the September $110 calls on this one looking to halve them on any double. Icahn Enterprises (IEP) Source: StockCharts.com View Chart » View in New Window » Formerly part of ING, Voya Financial (VOYA) is one of the strongest weekly charts I've seen. Support just below $38 and then again above $34, in the form of a trading channel, helps define the risk here. I'm looking for a move into the lower $40 into the end of this quarter. A dividend here would be nice, but for now this has the markings of solid risk-reward. Voya Financial (VOYA) Source: StockCharts.com View Chart » View in New Window » Lockheed Martin (LMT) may be a little tough for some to chase, but it sets up well to sell $170-$165 or $170-$160 put spreads expiring in September or October. I don't want anything under $160 because if that fails to hold then the bottom could really fall out of this name. Upside target is $185. Lockheed Martin (LMT) Source: StockCharts.com View Chart » View in New Window » Phillips 66 (PSX) is probably the toughest buy because this is an anticipation play. It is likely the biggest risk, but with a $10 potential pop before the end of October, the potential reward is very large. This screams calls or call spreads to limit the risk. Support is $82.50 followed by $80, but I wouldn't try to play with support. Limit risk and roll with October $87.50 calls for under $2 bucks. Phillips 66 (PSX) Source: StockCharts.com View Chart » View in New Window » F5 Networks (FFIV) reminds me of LMT. A solid breakout on earnings, but tough to chase. Again, I would look towards bullish put spreads like a short September $115-$112 put spread for a net credit around $0.40. There is support at $115, then $110. The risk-reward on the October $115-$110 put spread is all right for small trades, given the credit is only a few pennies over a buck for the extra time. F5 Networks Source: StockCharts.com View Chart » View in New Window » Curtiss Wright (CW) is breaking out and I look for $80 on the upside and $66 on the downside, which is an attractive 2-to-1 reward-to-risk ratio here. There isn't much I dislike about this chart other than I know little about the company. If the PMO or MACD rolls over quickly, then I would likely walk away. Curtiss Wright (CW) Source: StockCharts.com View Chart » View in New Window » Heidrick and Struggles (HSII) is another one that's been off my radar, but I'm a buyer of the stock here. A decent dividend of 2.5% to go with a very strong breakout over the ascending triangle. The upside reward is fairly symmetrical, with the downside risk around $2.50, but I view the probability of a mover higher greater than that of a move lower, making the thesis for the buy one I'm willing to take. HSII I want to see how we come into the close before getting too aggressive here, but have grabbed some starters in a few names.

Six Good-Looking Bullish Charts

These are targeted at names just on the verge of breaking out.

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