Top Trade Ideas for the Week of August 29, 2011: The Best

• Posted by Greg Harmon
• on August 28th, 2011

After reviewing over 900 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which
looks for the unofficial last week of Summer for Gold to bounce around in its uptrend while Crude Oil slows at resistance and turns lower. The US Dollar Index seems content to move sideways while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are biased to the downside with risk of the Chinese market running a little higher first. Volatility looks to remain elevated keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ, despite the moves higher, with the QQQ looking to have the best chance to break the bear flags higher. Use this information as you prepare for the coming week and trade’m well.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Here are the first 5 ideas for the week, to get you started:

Dollar Tree, Ticker: $DLTR

Dollar Tree is breaking the loose channel between 62 and 70. It printed a strong candle Friday and is heading higher. A continued hold over the channel has targets on a Measured Move (MM) of 78 and then 82. The rising Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator support a continued move higher. Use a stop at 69.5.

Hershey, Ticker: $HSY

Hershey is approaching the resistance area at 57.80 through 58 again from a higher low, almost a channel bounded by 53.50 below. If it can get over 57.80 it has resistance at 58.69 and then a MM to 61.50. Place a stop just under the breakout level. Through the down move teh RSI has held over 40 which remains bullish and the MACD is growing.

McDonalds, Ticker: $MCD

McDonalds is consolidating at new highs after a stair step up from the August pullback. A move over 90 has target on a MM to 98 (could one hundred be far behind?). The RSI is slowly trending higher and the MACD is positive but holding. Use the breakout at 90 as a stop or if enter early, just below the flag near 88.50.

NVE Corp, Ticker: $NVEC

NVE Corp broke above a symmetrical triangle last week and is holding above the break out. It has a RSI that is holding higher as well and a MACD that is increasing. If it can hold over the break out then it has resistance at 64 and a target on the pattern break at 72.50. Place a stop at 62 if aggressive or at 60 for more flexibility.

MEMC Electronic Materials, Ticker: $WFR

MEMC Electronic Materials is in an ascending triangle with a top at 6.95. If it can get over 6.95 it has resistance at 7.51 followed by 8.02 and then 8.59, before a pattern break target of 8.90. The RSI is rising and cracking the mid line and the MACD is increasing, both supporting more upside. Wait for the break and then place a stop near 6.85.

Up Next: The Rest

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