Top Trade Ideas for the Week of February 27, 2012: The Rest

Here are the Rest of the Top 10:

Diageo, Ticker: $DEO

Diageo, $DEO, is consolidating between 93.50 and 95.25 after a long move higher off of the August basing. It has a bullish Relative Strength Index (RSI) that is turning back higher on stronger volume Friday but a Moving Average Convergence Divergence (MACD) indicator that is negative and falling. Look for a break of consolidation higher to try the 100 roll and a break lower to find support at the 50 day Simple Moving Average (SMA) near 89.

Goldman Sachs, Ticker: $GS

The weekly chart for Goldman Sachs, $GS, is testing the downtrending resistance line near the 50 week SMA and the 50% Fibonacci retracement from the March 2009 lows. No wonder it has printed a string of small body and doji candles. This bull flag has significant upside potential on a break higher with a Measured Move to 146 with resistance along the way. Failure again has support at 90. The RSI is on the verge of turning bullish while the MACD is positive, but stalled.

L-3 Communications, Ticker: $LLL

L-3 Communications, $LLL, has been consolidating under 71.10 since mid January in an ever tightening zone. The RSI has remained bullish but continues to make lower lows while the MACD is negative and holding. A break higher pushes into a low price history zone until 78. A move below the consolidation has a lot of price history to slow a decent.

The Mosaic Company, Ticker: $MOS

The Mosaic Company, $MOS, is in a bull flag after rising off of the 100 day SMA, just below the 200 day SMA. The RSI is bullish and the MACD is positive and growing, both supporting more upside. A break of the flag higher has a Measured Move to 65, and a breakdown closing the gap to 57.92 finds support at the 50/100 day area.

Under Armour, Ticker: $UA

Under Armour, $UA, rocketed higher off of 82 support Friday to a triple top at 86. A break higher has a Measured Move to 96. The RSI is bullish and moving higher while the MACD has reversed a quick cross negative and is positive and growing again. Both support more upside. The 15% short interest, measured against no-insider holdings, will also give it a boost from short covering on a break higher.

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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 heading into the last week of February looks similar to last week with a few changes. Gold looks strong and ready to continue higher as Crude Oil may pause in its upward move. Both US Treasuries and the US Dollar Index looks better to the downside with a continued move lower by the Dollar likely. The Shanghai Composite and Emerging Markets both look better to the upside with the Chinese market likely to continue its move upward. The Volatility Index may not drop much more if at all but looks unlikely to rise soon either. These influencers create an environment for the Equity Index ETF’s SPY, IWM and QQQ to continue higher and the charts of the SPY and QQQ support the inter-market view. The IWM is biased higher, but needs to break a consolidation range before it can travel higher. A major move lower by the US Dollar or a breakdown by US Treasuries could accelerate Equities higher. 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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