Top Trade Ideas for the Week of December 10, 2012: The Rest
- Posted by Greg Harmon
- on December 9th, 2012
Here are the Rest of the Top 10:
Abaxis, Ticker: $ABAX
Abaxis, $ABAX, is testing channel resistance after breaking above the descending triangle, retesting the breakout and holding. A break above it triggers a Measured move higher to 42.30 consistent with the target from the triangle break. The Relative Strength Index (RSI) is bullish and rising with a Moving Average Convergence Divergence indicator (MACD) that is positive. Both support a further run higher.
Aetna, Ticker: $AET
Aetna, $AET, is back at the important 45 level as resistance, coming from a higher low. It also has a rising and bullish RSI with a MACD that is positive and growing to support more upside and a possible push through resistance. A break above continues towards the Measured Move higher at 48.30 with a gap fill at 48.75.
Agrium, Ticker: $AGU
Agrium, $AGU, is building a bull flag in consolidation between 99.25 and 103. The RSI is giving no clue as it runs along the mid line and the MACD is positive but stalled. There are gaps in both directions and it seems prudent to look both ways on this one.
Kansas City Southern, Ticker: $KSU
Kansas City Southern, $KSU, is is pushing against previous resistance at 80 from a higher low. It is also carrying a Measured Move higher to 83.20, near the prior double top. The rising RSI is on the verge of moving into bullish territory and the MACD is positive and growing, both supporting further upside.
Lorillard, Ticker: $LO
Lorillard, $LO, came off of a bottoming process around 111 and is consolidating in a bull flag. The Measured Move on a break of the flag higher takes it to 131. It has support for more upside from a bullish and rising RSI and a MACD that is positive and averting a cross to negative.
Up Next: Bonus Idea
If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.
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 next week sees the markets are slowing but positive. Gold looks to consolidate the latest move lower while Crude Oil joins it to the downside. The US Dollar Index is bouncing higher while US Treasuries are set up to move lower or consolidate. The Shanghai Composite and Emerging Markets are biased to the upside with the Chinese market doing so in a downtrend while Emerging Markets are gaining strength. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and IWM seem strong while the QQQ is the weakest of the 3 and should be the one to watch on a rollover. Use this information as you prepare for the coming week and trade’m well.
Join the Dragonfly Capital Views Premium Membership
These trade ideas are one piece of the Premium Service, which is complemented by weekly trend analysis, daily earnings plays and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
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)
Dragonfly Capital Updates
- I Finally Bought Google Today
- Premium Earnings 6-19-13
- This Fed Statement Should Be Important
- Stay Crafty When You Are Thirsty
- Premium Earnings 6-18-13 Part 2: FedEx
- Premium Earnings 6-18-13
- Risk On or Just Baby Steps to the Sleeping Bear’s Cave
- Arch Coal is Worthless
- Premium Earnings 6-17-13
- Top Trade Ideas for the Week of June 17, 2013: Bonus Idea