Top Trade Ideas for the Week of February 25, 2013: The Rest

Here are the Rest of the Top 10:

Chevron, Ticker: $CVX

Chevron, $CVX, has been consolidating in a bull flag for nearly 6 weeks around the 116.50 level. The Relative Strength Index (RSI) is bullish and has worked off a technically overbought condition while the Moving Average Convergence Divergence indicator (MACD) is stalled and well off the highs. A Measured Move higher out of the flag takes it to 124, still under the Potential Reversal Zone (PRZ) of the bearish Crab pattern above.

Gilead Sciences, Ticker: $GILD

Gilead Sciences, $GILD, has been moving higher for over a year. The latest consolidation under 43 may be another chance to enter long. The RSI remains bullish and the MACD is positive and rising, not near the extremes.

Keycorp, Ticker: $KEY

Keycorp, $KEY, is consolidating around resistance at 9.50, within a AB=CD pattern that peaks at 10.16. The bullish RSI supports more upside price movement while the MACD is falling but histogram beginning to improve.

PC Connection, Ticker: $PCCC

PC Connection, $PCCC, is flying a bull flag between 14.50 and 15 after a stepwise move higher from the descending expanding wedge. The Measured move higher takes it to 16. The RSI is working off a technically overbought condition while the MACD is beginning to pullback from extremes.

Yum Brands, Ticker: $YUM

Yum Brands, $YUM, is breaking up through 3 month long descending trend line resistance after making a new 52 week low. The RSI is moving through the mid line making a new higher high and the MACD is rising on the signal line and the histogram is positive and increasing.

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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, moving into the last week of February saw the markets give a wake up call, but then hit the snooze button. Gold is the exception testing long term support while a Crude Oil pulls back in the uptrend. The US Dollar Index looks to continue its move higher with US Treasuries consolidating in the short term downtrend. The Shanghai Composite and Emerging Markets are biased to the downside as well. Volatility looks to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The charts show potential for a short term pullback in the SPY and IWM but the longer term looks to the upside. This pullback could be triggered by a continued strong rise in the US Dollar through the nearby major resistance, Gold and Oil turning long term bearish, or Treasuries reversing higher. The QQQ however looks to be comfortable back in its channel within the long term consolidation. Its eventual breakout could be the key to the long term market direction. Use this information as you prepare for the coming week and trad’em well.

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Dragonfly Capital Views Performance Through February 2013 Expiry

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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.

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