Kicking off the week with a stride, this Momentum Monday dish offers a savory platter of breakout stocks and market insights. With the tale of stock price inclines still fresh in our memories from the past weeks, investors anticipate the inflation narration that awaits us this week, lingering like the final act of a play.
All eyes turn to the upcoming inflation data, following the goldilocks employment figures and Powell’s congressional address. Tuesday morning’s CPI and Core CPI unveil what analysts forecast—a potential increase in both month-over-month (MoM) and year-over-year (YoY) numbers. Thursday then comes along with PPI and Core PPI, serving as the week’s crescendo in terms of data points.
As performances across major indexes start to diverge and seasonal weaknesses encroach, the potential for a minor correction looms over the horizon. If the S&P 500 index dips below the 5,090 level, it may pave the way for further decline, potentially breaching the symbolic 5,000 mark and venturing lower.
Noteworthy is the recent records broken by both Bitcoin and Gold, adding a glimmer of sparkle to the overarching market backdrop.
Image Source: TradingView
Exploring Technical Trade Opportunities
Amidst the stock market’s bustling whirl, there exist a few intriguing technical setups that beckon to the vigilant trader. These setups, handpicked from stocks boasting top Zacks Ranks, present a canvas of potential profits for those astute enough to seize the moment.
Netflix NFLX emerges as a contender for the prestigious Mag 7 title, eyeing the breakout horizon situated at $614.
Image Source: TradingView
Ecolab ECL displays a tightly wound bull flag formation on the daily chart, with a potential upward journey upon breaking the $226 barrier.
Image Source: TradingView
Block SQ stands out as a favorite amidst the market’s bustling crowd. Offering a contrarian’s delight, the stock boasts promising earnings trends and a finely tuned technical setup.
Image Source: TradingView
Cardinal Health CAH continues its steady climb this year, embodying the defensive allure that appeals to many investors.
Image Source: TradingView
The Verdict
In the realm of trading, even the most intriguing setups can falter. Hence, the cardinal rule remains—a well-made trading plan, strict adherence to said plan, and the unwavering embrace of risk management strategies.
May the winds of fortune favor traders this week!