Top Trade Ideas for the Week of January 23, 2012: The Rest

Here are the Rest of the Top 10:

Autodesk, Ticker: $ADSK

Autodesk, $ADSK, is showing Topping Tails as it hits the top of a channel between 30 and 35.60. If it can overcome them and break higher it has a Measured Move to 41.20 with resistance along the way. If it fails then a pullback to the declining trend support line is likely. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence (MACD) indicator is positive and growing, both supporting more upside, as are the expanding Bollinger bands.

Comerica, Ticker: $CMA

Comerica, $CMA, is building a bull flag between 29 and 30 above the 200 day Simple Moving Average (SMA). If it can break the flag higher then there is minor resistance at June and July lows but nothing major until 35.75. The RSI is bullish and strong, but the MACD is fading, a possible signal of a reversal back to the lower consolidation area.

CROCS Inc, Ticker: $CROX

CROCS Inc, $CROX, is building a bull flag after a gap up. Over 19 it has a Measured Move to 22 above the gap fill. The RSI is bullish but fading a bit and the MACD is positive but also falling off as the flag builds. Both support more upside. The Bollinger bands are expanding as it rises as well to allow for more.

Cognizant Technology Solutions, Ticker: $CTSH

Cognizant Technology Solutions, $CTSH, is approaching a previously important support/resistance area at 71.20 for the third time in 2 months, each from a higher low. As it arrives this time the RSI is on the verge of making a new higher high and is bullish while the MACD that had been fading is now growing again. Both will support more upside. A break above the resistance are is likely to test the October high at 77.40.

McKesson, Ticker: $MCK

McKesson, $MCK, fell out of a bear flag channel and found a bottom printing a Doji Hammer on Thursday. It was confirmed higher on Friday. The last three days have seen relatively high volume, possibly signalling some exhaustion in the move lower. The RSI has held in bullish territory through the move down and the MACD is beginning to improve. Not quite a knife catch play but a bottom may be in place, at least to trade against.

Up Next: Bonus Idea

The Best

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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 heading into the last full week of January has Gold looking to consolidate or move higher within the intermediate downtrend, limited by 1700, while Crude Oil continues to consolidate within the 92.50 to 102.5 channel. Both the US Dollar Index and Treasuries are on watch for a breakdown lower. The Dollar out of a rising channel and Treasuries an ascending triangle. The Shanghai Composite looks to continue higher within the downtrend while Emerging Markets move up within the broad channel with 42.54 at the top. Volatility looks to consolidate or bounce within the downtrend after a strong move lower. These influencers combine to support more upside for the Equity Index ETF’s, and the charts for the SPY, IWM and QQQ agree and look 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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