These 12 stock market trade ideas are either immediately actionable or near actionable set ups with triggers near by. For each trade idea, I give you levels to alarm for entry, potential targets, and other key information to glean from the charts.
What are “Objective, Low – Risk ” Trade locations?
Central to my trading process is finding objective, low-risk trading locations. In essence, I want to find trade locations where there is a clean price level to shoot against and where a violation of that line clearly shows me when I am wrong. The low-risk part of the equation is to take a trade close enough to the price level that the reward is at least 3x the risk. Typically this means shorting into resistance, going long at support, going long a breakout, going short on a breakdown etc.
I’ve set these up in a fast read format so targets and strategies have been left to you. If you have a question or need additional input for any of these ideas, please reach out; glad to help.
Lastly, please double check the earnings date date prior to taking any position. Depending on your process you may or may not want to hold through earnings.
Price put in a divergent low and held key support against a tough tape last week. Good candidate to sell put spreads below support and / or go long against the low for a quick short -term pop.
Another managed care name that has found support. A good candidate to sell put spreads below support. A move above $245 and the downtrend line gives price room to run. If you’re bearish, alarm $235 for a breakdown and be patient.
If you’re long or want to get long, $225 on the weekly chart is your line in the sand. As long as price remains above $225, there is room to extend the breakout
Activision has a nice $8 gap to fill so I’ve been interested in following it. I think you can be long against the Friday low near $54.50. An alternate entry would be if / when price takes out R1 at $56.82.
Price has been consolidating just below $130 for a couple of weeks. Alarm that level for a heads up on a breakout. Get long above $130 with a stop just below.
Price initially broke down from $160 and made a move to $150. Now, as is often the case, price is re-visiting the scene of the crime with a back touch of $160. I favor a rejection here with massive OH resistance just above. Get short $160 with a stop just above and look for a move to $150 or lower.
Price has pulled back to both trendline and lateral support. You can see that buying value at TL support has been paying off. The fact that price also has lateral support is an added security blanket for a low-risk try at a long. I like getting long against $40 with a stop at $39 on a daily closing basis.
Price recently failed from a break out try, but is now pressing back up against OH resistance at $36. With a break above $36 I like its chances to stick this time. Alarm $36. If / when the alarm triggers, get long against $36 w/ a stop just below. Look for a move to the low $40’s if the broad market cooperates.
The exceptionally strong chart on CTAS favors a breakout if the broad market continues to perform. Alarm $269 for a heads up on a breakout. The longer than usual consolidation promises a $20 upside measured move if / when price breaks out. Once price breaks out, the $269 / $270 area should provide solid support.
I favor a breakdown of the double top structure. The pattern triggers on a break of $195 and points to a measured move target down around $172.50. Alarm $195 for a heads up on the move. While it is not my preferred scenario, it is objective to be long here against $195. Kill any long trade and flip bearish if price drops below $195.
To my eye, Disney has put in a big Head and shoulders topping structure since gapping up in mid April. The measured move on a breakdown aligns well with a gap fill down to the $115 area. Alarm $128 just below the 200ema to trigger a short entry against $129.50 ish. Earnings are in early November. Keep it in mind when initiating and managing your position.
Home improvement retailer Lowe’s has a sizable gap just below price. Gap support held on a recent test this past week. While it is certainly objective to be long here against $105, set yourself an alarm to go short on a break of $105 for the potential of a $7 gap fill.
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The charts are and levels are provided as well-informed guidelines. That said, please be aware that exogenous events like surprise tariffs or other events can easily move price through support / resistance zones.
Also, set you stops according to your own risk tolerance. The ones I have provided are to be used only as a guide. The most important aspect of your stop is to honor them. Some trades work, some don’t. Honoring your stop will ensure your loss on a failed trade will be minimal.
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