Trade Ideas Newsletter 08/24/2016

DLPH is poised for a contrarian breakout

Based upon the analysis above in DLPH, traders should make sure that their portfolio can handle increased risk from a new trade. Also be sure that DLPH adds diversification to your current account. Lastly, good traders note how a new addition relates to not just their portfolio but the rest of the market action as well. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Be sure to coincide your trading actions on DLPH in relation to the overall market as well.

CHART

Currently the proprietary sentiment levels, analysed by Traders For Wealth, have shown an increasingly negative bias toward DLPH. However, the price action in DLPH has been moving up in value. This could be a contrarian sign to traders for a potential reversal. Traders should view this as a bullish contrarian trade and make sure it aligns with the market and their portfolio.

Delphi Automotive Plc (DLPH)

Delphi Automotive PLC is a vehicle components manufacturer. The Company operates through three segments: Electrical/Electronic Architecture; Powertrain Systems, and Electronics and Safety. It serves automotive and commercial vehicle markets. Its Electrical/Electronic Architecture segment includes electrical architecture and component products. Its Powertrain Systems segment provides systems integration of end-to-end gasoline and diesel engine management systems, including fuel handling, fuel injection, combustion, electronic controls, test and validation capabilities, aftermarket and original equipment services. Its Electronics and Safety segment includes component and systems integration in infotainment and connectivity, body controls and security systems, displays, mechatronics, passive and active safety electronics and electric and hybrid electric vehicle power electronics, as well as advanced development of software.