Fortune Brands Home & Security
Last up is Fortune Brands Home & Security (FBHS), another channel trade that's testing trend line support right now. FBHS hasn't established its channel for as long as Visa has, but ultimately that could prove to be a good thing; after all, there's a whole lot less demand that's had a chance to be absorbed to date.
Yesterday, shares stopped right at support, a strong sign that buyers were actively jumping in towards the end of the session. Today, the entry strategy is exactly the same as the one in Visa -- I'd recommend building a position in this stock if it can push through its 50-day moving average during the session.
Then, keep a protective stop just on the other side of that support line.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
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