Top Trade Ideas for the Week of November 21, 2011: The Rest

Here are the Rest of the Top 10:

Celgene, Ticker: $CELG

Celgene, Ticker: $CELG, fell out of a bear flag Friday with a near Marubozu candle. The Relative Strength Index (RSI) broke hard below 50 and is near bearish territory, while the Moving Average Convergence Divergence (MACD) indicator which had been rising towards the zero line, turned back negative. Both support more downside. It is sitting on support at 63 though. A break below has major support in the 60 area which is also the target from the flag breakdown.

Citrix Systems, Ticker: $CTXS

Citrix Systems, $CTXS, printed a double top Wednesday in the consolidation zone between 70 and 75 after gapping higher in late October. Friday it drove lower near 70 support and the 200 day Simple Moving Average (SMA). A break lower will likely fill the gap to 66.63 and maybe more. The RSI heading lower and the MACD crossed negative support that breakdown.

Estee Lauder, Ticker: $EL

Estee Lauder, $EL, had a gap up after earnings and has been falling back since. Now it is testing support of the gap at 111.57. As it lands there the RSI is trending lower and the MACD has just crossed negative, both supporting more downside. A break below the gap has support at 108 and then a gap fill at 101.35.

Goldman Sachs, Ticker: $GS

The Vampire Squid, $GS, printed a bearish near Marubozu candle on the weekly chart, ending near the recent support from early October. This was after retesting the channel breakdown and failing. The RSI is trending sharply lower and the MACD is near flat but about to cross negative. A break below 91 has lots of room to the downside and a Measured Move (MM) to 76. Beware that this is a weekly chart and it will take some time for this to play out beyond the normal 5 to 7 day activity, but the reward is so potentially big it is worth including here.

SanDisk, Ticker: $SNDK

SanDisk, $SNDK, is testing support at 48, the bottom of a consolidation zone up to 52. It has a RSI that is trending lower, making a new low, and a MACD that is negative and growing more so. Both support a push through support lower. If it does fall through there is major support below at 45.

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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 we head into a Holiday shortened week, shows the market poised to move lower. Gold is set up to continue lower while Crude Oil remains in an uptrend but looks ready to continue its pullback. The US Dollar Index and US Treasuries both look strong, and the foreign markets followed, the Shanghai Composite and Emerging Markets both look to continue lower. Volatility looks to remain in the 30-36 range. Everything is aligned against Equities and in fact support the chart views that the Equity Index ETF’s, SPY, IWM and QQQ are all set to move lower but at support on the weekly charts. The Strong US Dollar Index and Treasuries will continue to be the key as they look to reinforce the negative view on Equities. If either or both move strongly against the chart set ups, US Equities could benefit and move 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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