Top Trade Ideas for the Week of April 30, 2012: The Rest
- Posted by Greg Harmon
- on April 29th, 2012
Here are the Rest of the Top 10:
Dupont, Ticker: $DD
Dupont, $DD, continues to test resistance at 54 from continually higher lows. It has a rising 50 and 100 day Simple Moving Average (SMA) showing the trend higher and a Relative Strength Index (RSI) that is in bullish territory with a Moving Average Convergence Divergence (MACD) indicator that is positive and rising. A break over 54 triggers a first Measured Move to 56 and then to 63.
Discover Financial Services, Ticker: $DFS
Discover Financial Services, $DFS, is testing its March top at 34 with support of a rising and bullish RSI and a MACD that has just crossed positive. Both support more upside. The expanding Bollinger bands are also a plus. A break higher from this consolidation zone over the last 6 weeks triggers a Measured Move to 42.
Dollar General, Ticker: $DG
Dollar General, $DG, has been consolidating between 45.50 and 47.50 but looks ready to move higher. A continued break higher has a Measured Move to 51.00. The RSI is bullish and rising and the MACD about to cross positive after trending higher, both supporting more upward price action. The increasing relative volume is a bonus.
Mellanox Technologies, Ticker: $MLNX
Mellanox Technologies, $MLNX, gapped higher after earnings and has held on a test lower. The RSI worked off the technically overbought condition and the price is back within the Bollinger bands. A move higher now would look for a retest of the high and through that a target of 81 on a Measured Move. It might also trigger a short squeeze as it has over 11% short interest. If it loses the gap then there is no support until 43.91.
Perrigo, Ticker: $PRGO
Perrigo, $PRGO, is consolidating as it retests the high from early March at 107.30. The RSI has remained bullish throughout the pullbakc and climb higher and is pointing towards more upside. The MACD is about to cross positive, giving its support for a rise as well. A move over 107.30 triggers a Measured Move to 122.
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After reviewing over 900 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which as the market heads into next week is looking very bullish again. Gold and Crude Oil are poised to continue higher with a chance that Gold digests its recent gains. The US Dollar Index looks better to the downside and Treasuries look to be contained back in the previous consolidation zone. The risk there is to the upside for Treasuries. The Shanghai Composite continues to flirt with a major break out and looks better to the upside with Emerging Markets stuck in a downward channel. Volatility retreated and is also set up better to the downside. Take away from that the upside risk is small. These influencers create a backdrop that supports more upside for the Equity Index ETF’s and their charts agree on both the short term and intermediate term timeframe. Use this information as you prepare for the coming week and trade’m well.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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