NEW YORK (TheStreet) -- Good day, traders!
Today's top picks are American Eagle Outfitters
(AEO - Get Report), Ford Motor
(F - Get Report) and the market darling Tesla Motors
(TSLA - Get Report).
1. First, let's look at American Eagle Outfitters, which operates as a specialty retailer of clothing, accessories and personal care products in the U.S. and internationally.
American Eagle traded up 2.92% on Monday, closing at $11.64 per share.
- Monday's range: $11.27 - $11.66
- 52-week range: $10.12 - $20.12
- Monday's volume: 4,332,361
- 3-month average volume: 5,025,610
American Eagle is a rounded bottom breakout, and has closed over the 50-day simple moving average for two days in a row. American Eagle has tried to complete a rounded bottom breakout in the recent past, but has failed and continued the downtrend.
There needs to be continued bullish strength for you to want to enter this trade today. There is some overhead resistance at $11.80, $12.11, $12.80 and then again at the 200-day simple moving average. I would suggest an entry within yesterday's candlestick range, between $11.27 and $11.66. I'd set a stop at about $11.09.
I would target the 200-day simple moving average for 16% to the upside. Stay long until you see a sell signal, or a close below the t-line.
2. Now, let's look at the American car manufacturer Ford Motor
Ford trade up 0.42% on Monday, closing at $16.63 per share.
- Monday's range: $16.38 - $16.68
- 52-week range: $14.30 - $18.02
- Monday's volume: 22,219,572
- 3-month average volume: 27,499,600
Ford looks good technically, as yesterday the chart formed a bullish engulfing signal, which is one of the most reliable candlestick signals. Plus, it formed a bullish left/right combo signal, a three candle formation that develops over three days. That occurs when there is a bearish candle one day, followed by a bullish harami the next day, followed by a bullish engulfing candle on the third day. Also, price action bounced off of the 20-day simple moving average, where it found support.
Look for Ford to trade up over the t-line. I'd look to enter at or above the t-line, which is at $16.68.
I'd set a stop just below yesterday's low of $16.38. I'd start with a one-quarter position and add to it when it clears the near-term resistance level of $17.08. Then, look for it to clear the 52-week high of $18.02.
I would target the 52-week high to start, then target the 5-year high at $18.97, which is about 12% to the upside. Stay long until you see a sell signal or a close below the t-line.
Coming up next: Tesla.
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