Top Trade Ideas for the Week of January 30, 2012: The Rest

• Posted by Greg Harmon
• on January 29th, 2012

Here are the Rest of the Top 10:

Endo Pharmaceuticals, Ticker: $ENDP

Endo Pharmaceuticals, $ENDP, is at resistance at 37.90, the bottom of the previous descending triangle from April through July, after stair stepping higher. As it sits there the Relative Strength Index (RSI) is bullish and hovering at 79, while the Moving Average Convergence Divergence (MACD) indicator is positive and beginning to grow again. The Simple Moving Averages (SMA) are starting to rise with the 50 day SMA heading towards a Golden Cross over the 200 day SMA. A move over resistance continues the stair step higher towards the 42 area and nearly 5% short interest should give it a tailwind.

Endeavour Silver, Ticker: $EXK

Endeavour Silver, $EXK, is rising in a symmetrical triangle, above the confluence of the SMA’s. It has support for a continued move higher from the rising and bullish RSI and the positive and growing MACD. A move over the upper rail at 11.40 triggers a target on the pattern break higher to 16.40. Rejection at the rail puts it back towards those SMA’s.

Pep Boys, Ticker: $PBY

Pep Boys, Manny, Moe & Jack, $PBY, is peeking above resistance at the 11.96 Fibonacci level which halted it from November to December. There is a gap to fill up to 13.28 or 11% higher. The rising and bullish RSI at 69 and the positive and increasing MACD support a continued move higher. It also has over 10% short interest that could get it going higher quickly as it confirms higher.

PPG Industries, Ticker: $PPG

PPG Industries, $PPG, broke above the descending trend line resistance at 88 nine trading days ago. This is also the neckline of an Inverted Head and Shoulders with a target of at least 112.60. It is consolidating in a bull flag at resistance at 90 with a RSI that is bullish but flat and a MACD that is fading but likely to glance off again higher instead of crossing, given the angle of approach. Wait for the move over 90 to enter.

Regions Financial, Ticker: $RF

Regions Financial, $RF, is consolidating near 5.40 after a move higher from the 4.40-4.50 breakout area. Looking at the volume at price bars it is in a vacuum area that exists up to about 6.00. The RSI is bullish and rising, continuing the trend higher. At over 71 on the 14 day measure, it is technically overbought but not extreme. The MACD is positive and slowly growing, also supporting more upside.

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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 as January is closing out, the coming week looks to bring more upside for Gold and further consolidation within the broad 93 – 103.83 range for Crude Oil. The US Dollar Index looks to continue lower while US Treasuries consolidate after probing lower. The Shanghai Composite and Emerging Markets are biased to the upside after China taking the week off. Volatility looks to continue to slowly move lower toward support. These influencers create a positive environment for the US equity index ETF’s SPY, IWM and QQQ, and their charts are all pointing to higher levels. A strong move by China lower could change this picture or as sharp move higher by the US Dollar Index. Use this information as you prepare for the coming week and trade’m well.

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