Top Trade Ideas for the Week of January 22, 2013: The Rest
- Posted by Greg Harmon
- on January 21st, 2013
Here are the Rest of the Top 10:
Cummins, Ticker: $CMI
Cummins, $CMI, has been moving higher off of a double bottom in mid October and a confirmed Inverse head and Shoulders (IHS) in early December. The price objective of the IHS is in the cross-hairs now at 118. The latest moves higher have come in a a couple of runs followed by consolidation and it is breaking consolidation now. The Relative Strength Index (RSI) is bullish and the Moving average Convergence Divergence indicator (MACD) is crossing to positive, both supporting further upside.
Edwards Lifesciences, Ticker: $EW
Edwards Lifesciences, $EW, gapped lower in early October and has been slowly pushing higher. Closing above the 100 day Simple Moving Average (SMA) Friday for the first time since that gap, it has support for more upside from a bullish RSI and a MACD about to cross to positive.
Palo Alto Networks, Ticker: $PANW
Palo Alto Networks, $PANW, has not been public for long but has been in a downtrending channel for most of that time. Breaking it higher last week it has support for more upside from a rising RSI that just crossed into bullish territory and a MACD that is positive and growing as it moves over the November high consolidation.
Constellation Brands, Ticker: $STZ
Constellation Brands, $STZ, had a drift lower after its earnings report and found support at the 100 day SMA, printing a Tweezers Bottom, before bouncing and now consolidating at new highs. The RSI is bullish and the MACD is positive and growing, both supporting a push through higher.
WellPoint, Ticker: $WLP
WellPoint, $WLP, is building a bull flag over the 200 day SMA as it readies to report earnings Wednesday before the market opens. The consolidation is happening at the previous high, and a historically important level. The RSI is bullish and the MACD is positive and averting a cross to negative, both supporting a push higher.
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 the shortened holiday week sees the markets continue to look bullish. Gold looks set to continue higher within the sideways channel while Crude Oil continues its rise. The US Dollar Index seems content to move sideways while US Treasuries are biased higher in the downtrend. The Shanghai Composite and Emerging Markets are biased to the upside on a break of their recent consolidations. Volatility looks to remain low and biased to move lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. There seems to be some rotation from the IWM into the SPY and now the QQQ is clearly lagging in a consolidation zone, keep an eye on it. 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
- Macro Week in Review/Preview December 6, 2013
- With The US Market in the Dumps Turn To China (Part III)
- Testing the Waters With Celgene
- A Long Term View On…. The Redux of 2013
- Premium Earnings 12-5-13
- 4 Lessons From A Glance Back at 2013
- The PC is Dead, Long Live PC Stocks
- Premium Earnings 12-4-13
- With The US Market in the Dumps Turn To China (Part II)
- With The US Market in the Dumps Turn To China (Part I)