Top Trade Ideas for the Week of May 29, 2012: The Rest
- Posted by Greg Harmon
- on May 28th, 2012
Here are the Rest of the Top 10:
Allstate, Ticker: $ALL
Allstate, $ALL, is rising up out of a consolidation around the 50 day Simple Moving Average (SMA) with a Relative Strength Index (RSI) that held in bullish territory and is rising. The Moving Average Convergence Divergence (MACD) indicator is negative but improving. If both continue they support further upside and a retest of the highs earlier in the month.
China National Offshore, Ticker: $CEO
China National Offshore, $CEO, is consolidating at 180 with a RSI that is moving sideways after briefly moving to a technically oversold condition. The MACD is improving and about to cross bullishly positive. This name looks to trigger this week. Look both ways. There is potential of $10 to both resistance and support.
Hanes Brands, Ticker: $HBI
Hanes Brands, $HBI, moved higher off of the Piercing Candle last Monday and through prior resistance. The RSI is trending higher, while still in bearish territory, with a MACD that has crossed positive. Both support more upside. Short interest at about 8% could also fuel a move higher.
JB Hunt Transportation, Ticker: $JBHT
JB Hunt Transportation, $JBHT, is nearing the Double Top at 57.30 after finding support at the rising 100 day SMA. Will it become a Triple Top or a breakout? The rising RSI, about to cross into bullish territory, and the MACD that has crossed positive support the upside case.
ONYX Pharmaceuticals, Ticker: $ONXX
ONYX Pharmaceuticals, $ONXX, is moving higher toward resistance at 47.70 after finding support at prior support at 42 and getting a boost from the 20/50 day Simple Moving Average (SMA) cross. The RSI is bullish and rising with the MACD crossed positive, both supporting more upside movement. The move higher traces out a ‘W’ pattern and a break over the previous is a buy signal.
Up Next: Bonus Idea
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After reviewing over 1,000 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 heading into the unofficial first week of summer, the bearish feel is still alive. Gold and Crude Oil look to continue the trends lower with a chance of consolidation. The US Dollar Index looks strong but may consolidate after a big move last week, while Treasuries are biased higher after consolidating last week. The Shanghai Composite looks to continue lower with the Emerging Markets consolidating in the downtrend. The Volatility Index remains biased to the upside after holding higher. These influencers set the stage for the Equity Index ETF’s SPY, IWM and QQQ to continue lower. A reversal by the Dollar Index and treasuries could change that. The charts of those Index ETF’s are consolidating short term in a downtrend, with the QQQ looking the worst of the three. Remember consolidation can break either way. A move below last week’s lows will have the bears growling. it will take a lot for the bulls to be happy. 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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