Top 10 Trade Ideas for Week of November 29, 2010

After looking at over 500 charts and posting my thoughts on many of them, I have found some good setups for the week. This week’s list contains 8 long ideas, one short idea and 2 plays that could go either way. These were selected and should be viewed in the context of the broad market daily and weekly trend, reviewed Saturday, which looks looks to bring caution to the markets again.  Gold may rest or pullback some more in the long term uptrend, the US Dollar Index and US Treasuries look higher but may be topping at resistance shortly and Oil seems primed to move higher.  Emerging markets look in trouble and headed lower.  The bias in the Volatility Index is to the upside and combined with the potential for a stronger dollar the SPY, although undecided, is biased lower short term.  IWM and QQQQ however seems stronger and biased to the upside short term. From the twitter feed and on chartly.)

Here are the top ten for the week in alphabetical order:

1. Abbott Laboratories, Ticker: ABT

Abbott Labs is getting very oversold and may be ready for a bounce. The Relative Strength Index (RSI) is leveling and the Moving Average Convergence Divergence (MACD) indicator is turning up. If it can hold 46.70 then the next resistance level higher is 47.60 followed by 48.50.

2. Compellent Technologies, Ticker: CML

Compellent is in an ascending triangle with top rail resistance at 26.40. If it can break through then the price target is 30. There is support at 23 below.

3. Cost Plus, Ticker: CPWM

Cost Plus is in a bull flag after a big run up on strong volume. The RSI is quite high so it may consolidate while it works off the overbought condition. The rising Simple Moving Averages (SMA’s) add weight to more upside, and if it can get above 8 the price target would be 10.50. If it fails and falls under 7.75 then there is support at 7.25 before a return to 5.60.

4. Diana Shipping, Ticker: DSX

Diana Shipping is moving down, now below the 100 day SMA. There is some support at 12.15 followed by 11.90 and then 11.55. The falling RSI and worsening MACD support a continued move lower.

5. EZCORP, Ticker: EZPW

EZCORP is the best looking financial chart I follow. It broke the April highs, retested the area and held and is now moving higher. There is support at 25.60 and a price target higher of 27.15 on a measured move. The MACD is about to move positive and the rising RSI add weight to the bull case.

6. Genoptix, Ticker: GXDX

Genoptix is moving higher after basing recently. If it can get above 18.25 and then the 18.60 area of resistance from the summer then there is no further resistance until the gap is filled at 21.85.

7. Liz Claiborne, Ticker: LIZ

Liz Claiborne broke through resistance at 7.07 and is now testing the area as support. If it can hold 7.07 and 6.88, then the next resistance higher is at 7.33 before a series of resistance levels at 7.8, 8 and then 8.50.

8. Manulife Financial, Ticker: MFC

Manulife is sitting on support at the 13.90-14.00 area. If it continues to hold the next level of resistance comes at 15.20 followed by 16.25. If the bear flag resolves lower then the first support is at 13.28. The RSI has bounced at 50 for the moment suggesting the fall may be over.

9. Magnum Hunter Resources, Ticker: MHR

Magnum Hunter is in a bull flag, between 5.90 and 6.25. If it breaks the flag higher then the price target is 7.50. The MACD is strong but the RSI is falling. If it stops soon, having just worked off the overbought condition, then a move higher can be expected.

10. PetroQuest, Ticker: PQ

PetroQuest is in a symmetrical triangle after breaking higher through the SMA’s. It is near resistance at 7.15 and if it can get through it then the next upside resistance is at 8.08. If it falls out of the triangle then expect support at 6.6 followed by 6.26. The falling MACD and RSI suggest it may revert lower, but play what it gives you.

Bonus Idea: Qwest Communications, Ticker: Q

Qwest has been consolidating in a channel between 6.70 and 6.95 for almost a month. If it can get above 7 then the price target would be 7.70. A rising RSI and improving MACD suggest it might get through soon.

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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