Three Triangle Trades

By | August 26, 2014

Here are three stocks I’m watching, that have been consolidating in triangle patterns and have positive price momentum indications and improving money flow.

26. RVT EVHC chart

Envision Healthcare Holdings (EVHC) has been making higher lows for the last two months, but has been unable to break above the $36.50 level. The relative strength index and MacD are tracking above their centerlines, and Chaikin money flow reflects accumulation. A squeeze condition is in place, as defined by the Bollinger bands, a measure of deviation around a moving average, moving inside the Keltner channels, a measure of deviation around average true range.

26. RVT MS chart

Shares of Morgan Stanley (MS) broke above larger triangle resistance and made a new high for the year. The MacD has made a bullish crossover and Chaikin money flow is above its 21 period average, which I use as a signal line. The relative strength indicator and the money flow index, a volume-weighted relative strength measure, are nearing overbought conditions. The stock offers a good risk/reward long entry point at its current level, but the oscillators hint that it might, also, want to retest the upper end of the triangle.

26. RVT AMTD chart

TD Ameritrade Holding (AMTD) has been advancing above the support of its 200 day moving average, and below resistance in the $32.70 area. This stock broke above triangle resistance this week, and remains a good/risk reward long at its current level. To maintain its momentum, however, volume and positive money flow will need to improve.

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