5 Bullish Set-Ups into the Week

The reversal move by the markets Friday left some strong looking charts, and although the market remains submerged under its falling 20 day EMA, certain charts are starting to set-up bullish, and many relative strength names still have rising 10, 20, 50, and 200 day moving averages and are either above, or near breaking above these key resistance levels. It should be a quiet week of trading into the 3 day weekend, and despite key economic data like ISM and the Employment Report, the weeks where many of the large institutional accounts are on vacation tend to favor melt-ups.

I only scan names that average 1,500 or more option contracts a day, and my 5 favorite bullish set-ups are the following:

1) Crocs (CROX): Shares are in a falling wedge in a longer term uptrend which can result in a powerful breakout move, resistance at $28 as the key level. MACD and RSI are trending in a bullish manner, and the uptrend is in the early stages. More than 8% of the float is short, and a PEG of 0.9 with the growth story accelerating.



2) Baidu (BIDU): Shares were weak in recent weeks with some bad press, but with that being put behind it, shares did find great support at its 200 day EMA, and now face trend resistance along with the 50 day EMA converging at $140, the key breakout level. RSI is rising and MACD made a bullish crossover on Friday. Baidu is the dominant way to play Chinese Internet growth and continues to report consistently strong earnings.



3) Jazz Pharmaceuticals (JAZZ): Shares of JAZZ have formed a small triangle with a break above $38.50 likely to result in a surge to $40, follow back a run at $42. MACD is crossing over bullish and RSI is breaking above the 50 mark. JAZZ trades just 8.75X forward earnings and a PEG of 0.99, one of the cheapest growth plays in Biotech.



4) CVR Energy (CVI): Shares broke past trend resistance and have recovered quickly froma touch of its 200 day EMA, which is still rising, shares now above all major EMAs. The $2.35B refiner trades 8.16X earnings, PEG 0.6, and 0.49X sales.



5) Cabot Oil & Gas (COG): Shares held trend support after a recent test of its rising 100 day EMA, a strong name among the shale plays and near a break of trend resistance around $72.50. MACD is turning bullish and RSI is trending higher, while ADX nears a bullish crossover.