We are also removing STARR Surgical (STAA) from our long ideas because it has stalled near its 200-day moving average, in addition to the AXS Short Innovation ETF (SARK) because it violated our stop-loss.
A new long idea is mid-cap safety equipment company, MSA Safety (MSA):
MSA looks poised to confirm a breakout above resistance defined by the weekly cloud model and a downtrend line going back to January in a bullish intermediate-term development. The breakout follows a shakeout last week, which resulted in a higher low above the 40-week moving average.
The reversal higher in MSA resulted in upturns in our intermediate-term indicators, shown below. The weekly MACD is nearing a “buy” signal, which would support a couple months of additional upside associated with the breakout.
A targeted level can be derived in part from a measured move projection and a Fibonacci resistance level near $157. The 10-week (~50-day) moving average, currently near $132, can be used as trailing stop-loss for long positions in MSA.
MSA Safety (MSA, $138.65):
Target: $157
Stop-Loss: $132