Top Trade Ideas for the Week of October 24, 2011: The Rest

Here are the Rest of the Top 10:

Dollar Tree, Ticker: $DLTR

Dollar Tree, $DLTR, is in a bull flag at all time highs. The Relative Strength Index (RSI) has been bullish since shortly after moving off of the lows in early August. The Moving Average Convergence Divergence (MACD) indicator however is about to cross negative. A break over the top of the flag has a Measured Move (MM) to 90.

DIRECTV, Ticker: $DTV

DIRECTV, $DTV, is also in a bull flag between 46 and 47 after breaking above an expanding wedge. The RSI is holding firm above the mid line and the MACD is positive but fading a bit. A break above 47.10 has a target on a MM to 53.50.

FirstMerit Corporation, Ticker: $FMER

FirstMerit Corporation, $FMER, is breaking above resistance at 13 as it heads into earnings Tuesday before the open. The RSI is rising and the MACD increasing, both supporting more upside. Notice that the 50 day Simple Moving Average (SMA) is starting to rise. A continued move higher has major resistance overhead at 16.

Jazz Pharmaceuticals, Ticker: $JAZZ

Jazz Pharmaceuticals, $JAZZ, is bouncing off of a bottom the up day Friday confirming the Morning Star candle from Thursday. The RSI is also turning higher and the MACD starting to improve. Look for it to at least test the 50 day SMA and likely the 44 area.

Old Republic International, Ticker: $ORI

Old Republic International, $ORI, is testing the triple top at 10. The rising RSI and increasing MACD support more upside. The Hanging Man candle give caution though. Over 10 it continues to the target of a MM at 10.50 and resistance at 11.40 above.

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The Best

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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 into next week looks for Gold to continue the move it started lower while Crude Oil consolidates at resistance with the possibility of a pullback. The US Dollar Index and US Treasuries both look to continue lower. The Shanghai Composite is on the edge of collapse and Emerging Markets look lower but may continue to consolidate. Volatility seems biased to the downside creating a supportive environment for the Equity Index ETF’s SPY, IWM and QQQ to continue higher. The SPY has the strongest set up going into the week with the QQQ the weakest. Almost time to get bullish. 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.

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