There are no new mentions this week but the ones from last week remain viable.

COF Friday Closing Price - 90.78

COF is a financial institution that for the past 2 years and based on weekly closes has traded mostly between $78 and $94 dollars though it did have one rally up to $105 and one drop down to $72. Simply stated it is dependable but also has shown adherence to chart support and resistance levels.

Like the index market, COF generated the drop down to the $72 level in December and then got into a rally that seems to have been culminated 4 weeks ago with a intraweek high at 94.38 (weekly close at 94.26), followed by a mini 7.5% correction down to 87.24 during the weakness seen in the index market. The stock generated a positive reversal week last week, having made that 87.24 low and then rallying to close green for the week and near the highs of the week, suggesting further upside above last week's high at 91.56 will be seen this week, which in turns opens the door for short that has a clearly defined and decent resistance area as well as a clear downside target based on the 2-year history of trading in a trading range.

COF does not report earnings for another 2 months, suggesting the traders will trade the stock via the charts and what the indexes do rather than on its own.

COF has traded mostly above the 200-week MA, currently at 83.13, for most of the 2 years it has been on this trading range but did break the line in December when the correction in the index market occurred and traded below the line for 15 weeks before finally getting above it again. Since the line got broken to the upside on this occasion, there has not yet been a retest of that line, suggesting that if the index market is going to have more selling than buying pressure for the short term, that the line is not only a viable downside objective but one with a high probability of being seen.

Like the indexes, COF got up to a minor intraweek resistance at 91.60 with the 91.56 high that was seen this past week. Like with the indexes, the probabilities of that resistance getting broken are better than not. If broken it would suggest an additional rally up to the next resistance area at 93.40. Either way, the 94.26 weekly close resistance that is further strengthened by a high weekly close at 93.94 seen in February 2017 does make that area dependable resistance and unlikely to be broken at this time.

To the downside, COF does show weekly close support at the 200-week MA but on an intraweek basis no support is found until the $80 level is reached.

It is important to note that the bounce seen in COF this past week was because the stock got down to the 200-day MA, currently at 87.79 with a low at 87.24 and that is why this opportunity to short the stock is available.

The big question this week, but one that should be answered no later than Wednesday, is whether the minor resistance at 91.60 is broken or not, meaning the risk/reward ratio is the only thing at risk of changing.

Sales of COF around the 93.40 level and using at 94.48 stop loss and having a minimum downside objective of 83.13 will offer almost a 10-1 risk/reward ratio. A sale of the stock above 91.00 and using the same stop loss and objective, will lower the risk/reward ratio to 2.3-1. Nonetheless, the probability rating on this trade is high.

My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the highest).

EPD Friday Closing Price - 28.34

EPD provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals and refined product. Natural gas has been in high demand with short supply for the winter months and also because supplies had fallen anywhere from 16% to as much as 29% from year ago levels. Nonetheless, it is now anticipated that because of the higher prices, there is going to be an increase in production at a time where demand goes down during the hot summer months. Click on this link for further details: Fundamental outlook for Natural Gas

In looking at the chart of EPD, the one thing that jumps out immediately is how consistent in price this stock has been since March 2016, having traded all this time between $24 and $29.50 (based on weekly closes), having seen the high level 7 occasions and the low level on 5 occasions during this period of time. The stock got up 8 weeks ago to an intraweek high of 29.84 and then proceeded to drop down to 28.04 over the subsequent weeks. The stock closed on the highs of the week last week, suggesting this week the stock will go above last week's high at 29.05 this week, opening the door for a short position to be instituted with a small risk factor.

It should be mentioned that EPD has not shown any big moves down on this occasion as of yet but this same type of action was seen last year between July and October for a period of 12 weeks that ultimately ended up with a drop down to 23.33 in a period of 11 weeks thereafter. It does suggest that based on the fundamental outlook shown in the link that something very similar is likely to happen again, especially considering the dependability of the chart for the past 3 years.

Sales of EPD around the 29.30 level and using a stop loss at 30.35 and having an objective of 23.30 will offer a 5-1 risk/reward ratio.

My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the highest).

I am also considering adding positions on ARNA below 52.00.