3 Bullish Stock Picks for Week Ahead (BA CVX UNH)

Advertisement

Last week’s downturn took its toll on stocks across the land. The selling was particularly acute in small caps, with the Russell 2000 slicing through key support. But all is not lost, as we spy three stellar stock picks in particular for the week ahead.

3 Bullish Stock Picks for Week Ahead (BA CVX UNH)

As is usually the case with earnings season, the haves are being separated from the have-nots. Despite the weak-sauce market backdrop, stocks besting expectations are seeing instant rewards.

The silver lining of last week’s rout is the ease with which strong stocks can now be identified. While a slew of laggards suffered support breaks, leading stocks merely retraced to potential buy levels. You know, those boasting lower risk and higher reward.

That’s a good thing for traders who are loath to chase following a solid earnings jump. Charts have been scanned, watchlists culled and here’s the result: three stellar stock picks for the week ahead.

Bullish Stock Picks: Boeing (BA)

BA
Click to Enlarge
Source: OptionsAnalytix

Boeing Co (NYSE:BA) has been a dog all year long. Traders seeking trends have passed on BA stock for months now. The culprit? It’s been in a dopey trading range unable to get any kind of momentum going. Until last week, that is.

BA stock finally, finally, mustered the strength to depart its range-bound prison. The upside breakout was a sight to behold. The breach was accompanied by heavy volume adding legitimacy to the move and increasing the likelihood that near-term dips are quickly bought.

And lucky for us, a dip has just materialized. It’s time to bet with BA stock bulls.

If you’re willing to wager Boeing shares remain north of $135 for the next month, sell the Dec $135/$130 bull put spread for 81 cents.

Bullish Stock Picks: UnitedHealth (UNH)

UNH
Click to Enlarge
Source: OptionsAnalytix

UnitedHealth Group Inc (NYSE:UNH) shares soared on earnings recently. The surge was sufficient in carrying UNH stock to yet another all-time high. The groundswell of buying created five consecutive accumulation days surrounding the jump, which is a positive omen for bulls here.

The profit-taking striking equities last week has ushered UNH stock back to its rising 20-day moving average. If dip-buyers materialize in the coming days, this is as good an entry point as any for traders looking for the uptrend to continue.

Wait for signs that UNH is rebounding, then sell the Dec $135/$130 bull put spread for 92 cents.

Bullish Stock Picks: Chevron (CVX)

CVX
Click to Enlarge
Source: OptionsAnalytix

Chevron Corporation (NYSE:CVX) rounds out our trio of bullish stock picks. Unlike its predecessors, CVX stock is boasting a breakout. Thanks to its post-earnings jump Friday, Chevron was able to close out the week on a high note.

With Chevron stock continuing its climb in early morning trading Monday, it appears we have a breakout on our hands. The recent high near $107.50 is beckoning and CVX buyers seem all-too-willing to respond.

If you think Chevron keeps climbing, grab the Dec $105/$110 bull call spread for $1.79.

As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.

For a free trial to the best trading community on the planet and Tyler’s current home, click here!


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/3-bull-stock-picks-ba-cvx-unh/.

©2024 InvestorPlace Media, LLC