We recommend closing out positions in the iPath VIX Short-Term Futures ETN (VXX) because it is into resistance, and our intention is to use it only as a short-term hedging vehicle. We are staying with the SPDR Gold Shares (GLD) shares, for now, as long as gold prices can hold the 200-day moving average.
Celanese (CE) is our latest idea, a chemical company that has seen a turnaround in absolute and relative terms…
CE has seen a positive shift in intermediate-term momentum per the weekly MACD “buy” signal shown on the chart below. The momentum shift comes after an oversold “buy” signal flashed near long-term support at the weekly cloud (the shaded area on the chart).
From a short-term perspective, CE has made higher lows and recently cleared its 50-day (~10-week) moving average on renewed short-term momentum, which serves as a positive catalyst. Relative strength was positive for CE in the difficult month of April.
Final resistance near $174 serves as an aggressive upside target for CE. Two consecutive closes below short-term support near $139 would mark a breakdown and can be used as a stop-loss level.
Celanese (CE, $150.34)
Target: $174
Stop-Loss: $139