Top Trade Ideas for the Week of January 3, 2012: The Rest

Here are the Rest of the Top 10:

Allstate, Ticker: $ALL

Allstate, $ALL, is consolidating near resistance at 27.80 and the 200 day Simple Moving Average from a higher low. It has a Relative Strength Index (RSI) that has been bouncing between bullish and bearish boundaries and not moving strongly in either direction. The Moving Average Convergence Divergence (MACD) indicator is positive but stating to fade, maybe as a result of the consolidation. A move over that resistance has a gap to fill at 28.40 and then again at 31.28.

Dow Chemical, Ticker: $DOW

Dow Chemical, $DOW, broke out of a symmetrical triangle last week and is now at previous resistance. Through that resistance the target on the pattern break is to 33.90. The RSI is bullish and rising and the MACD is positive and holding, both supporting more upside.

HJ Heinz, Ticker: $HNZ

HJ Heinz, $HNZ, is building a bull flag between 53.85 and 54.55. As it sits there the RSI is starting to fall but is in bullish territory and the MACD is positive, but starting to fade. If it breaks the flag higher there is a Measured Move to 57, but a break down out of the flag is likely to retest the 52 area. Wait for the break and play the one it gives you.

Universal Display, Ticker: $PANL

Universal Display, $PANL, is starting higher out of a low base built over the last half of December. The RSI is rising quickly nearing the mid line and the MACD has crossed positive, both supporting further upside. This stock has very high short interest as well at over 25%. A continued move to the jumble of Simple Moving Averages (SMA) near 43 is likely.

Synergetics, Ticker: $SURG

Synergetics, $SURG, is building a bull flag, consolidating between 7.20 and 7.50. It has support for a move higher from the strong RSI bullish and in the high 60’s. The MACD is positive but is fading though and it is extended from the rising SMA’s. A move over 7.50 has a Measured Move to 8.60 and a breakdown under 7.20 likely retests the 6.40 area. Short interest is elevated in this name at about 5%.

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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 looks moving into the New Year that the theme for the week is consolidation or a movement with in the range with a few exceptions. Gold may move higher but in a downtrend while Crude Oil holds the broad range. The US Dollar Index and Treasuries look to continue their upside bias but in slow ranges. A violent move from either will likely continue to drive the Equity Markets. The Shanghai Composite looks to consolidate around the 2200 level while Emerging Markets tighten their range. Volatility looks to creep up in the downtrend. These all create an environment for Equities to move lower. The very short term aspects of the SPY, IWM and QQQ charts agree but suggest a continued sideways to slightly higher move after a few days. 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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