Top Trade Ideas for the Week of November 28, 2011: The Rest

Here are the Rest of the Top 10:

American International Group, Ticker: $AIG

American International Group, $AIG, is testing support at 20 after a move lower from the 27.50 support/resistance area. As it heads lower the Relative Strength Index (RSI) is moving sharply lower and in bearish territory while the Moving Average Convergence Divergence (MACD) indicator, which has been very near zero since February, is currently negative and growing more so. Both support more downside. The Simple Moving Averages (SMA) are also all sloping lower emphasizing the downtrend. Under 20 there is support at 18.05 and then kerplunk!

Canadian National Railway, Ticker: $CNI

Canadian National Railway, $CNI, has been falling back from a Double Top at 80 this month and is now at the convergence of the 50, 100 and 200 day SMA’s looking for support. This area has been resistance in late August and in October as well. But with the RSI trending lower and now nearing bearish territory and the MACD negative and growing more so it looks to have a good chance to go lower.

Dillard’s, Ticker: $DDS

Dillard’s, $DDS, is in a bear flag at previous support/resistance at 49 between the SMA’s. The RSI is trying hard to hold over the 40 level and remain bullish, while the MACD has been negative and is stalled. Losing the flag lower has downside to the August and October lows, whereas a break above 50 can see upside to the gap and higher. Short interest is high at about 10%.

Universal Display, Ticker: $PANL

Universal Display, $PANL, has moved lower through support at 40.40. It has a RSI that is falling sharply and an MACD that is rapidly growing more negative. Both support more downside. Short interest is high at near 25% so keep a close eye or use options.

Valeant Pharmaceuticals, Ticker: $VRX

Valeant Pharmaceuticals, $VRX, has been moving in a descending triangle after a long move higher from the October low. The RSI is in bullish territory and supporting more upside but the MACD is crossed negative and moving further down. A break below the triangle at 41.50 has a target of 38 and a break higher over 43 a target at 46.50.

Up Next: Bonus Idea

The Best

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.

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 looked as November turns into December it looks like Santa Claus is sending a message to Americans, as he brings a rally only to the US Dollar and US Treasuries. Gold and Crude oil look ready to continue lower, while the Shanghai Composite and Emerging Markets do the same in their downtrends. Volatility looks to remain in the lower end of the elevated channel but with the first sign of a move higher. All of these combine to produce a horrible environment for the Equity Index ETF’s SPY, IWM and QQQ. The IWM and QQQ look the most extended so look for the SPY to catch up a bit in the coming week. The past week has the US Dollar and Treasuries driving the action and expect that to continue in the coming week. So any reversal in these should benefit Equities. Use this information as you prepare for the coming week and trade’m well.

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
Dragonfly Caps Blog