Top Trade Ideas for the Week of June 11, 2012: The Rest

• Posted by Greg Harmon
• on June 10th, 2012

Here are the Rest of the Top 10:

eBay, Ticker: $EBAY

eBay, $EBAY, is back at long term resistance in the channel between 38 and 41.60. As it hits the top it has support for more upside from a rising, although decelerating, Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) indicator that has crossed to positive. A break of the channel has a Measured Move to 45 and the 3 box reversal Point and Figure chart concurs with a price objective of 46.

ONYX Pharmaceuticals, Ticker: $ONXX

ONYX Pharmaceuticals, $ONXX, had a strong move higher to the top of the 41.50 to 47.60 consolidation zone on Friday on strong volume. This is the third shot at the top resistance. As it arrives there the RSI is bullish and moving higher with a MACD that is about to cross bullishly positive. Both support more upside action. A break out over the top of the range has Measured Move to 53.70 with fuel from a 12% short interest to help move it higher.

Stericycle, Ticker: $SRCL

Stericycle, $SRCL, is approaching a long term resistance zone from 88 to 89 with a long white bullish Marubozu candle Friday. The RSI is bullish and the MACD positive and rising as it arrives, supporting further upside. A move higher over the zone has a target from the expanding triangle of 95.

United Parcel Service, Ticker: $UPS

United Parcel Service, $UPS, is making a strong move higher off of the doji Hammer at 72.75 last week with a Marubozu followed by a doji and a second Marubozu. Recall that the second doji occurred on a day the broader market had a Marubozu lower. It gave up nothing. Now at the resistance from February and the 100 day Simple Moving Average (SMA) it has support for a move higher from the rising RSI and the MACD that is positive and increasing. Look for a break higher to retest the March top.

Wellpoint Health Networks, Ticker: $WLP

Wellpoint Health Networks, $WLP, also had a strong Marubozu candle on Friday finishing at resistance of the last month at 69. As it sits there the RSI is making a new high and turning bullish with a MACD that is positive and increasing, both supporting further upside price action. A move over 69 has a Measured Move to 73 and upside resistance at the top of the expanding wedge above that.

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After reviewing over 1,000 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 options expiration week the tone of the market has lightened but not quite turned bullish. Gold is back to being an enigma consolidating in the short term within the intermediate downturn in the long term upward trend while Crude Oil looks to head lower, perhaps consolidating in the very short term. Treasuries and the US Dollar Index look to further pullback or consolidate their recent gains in their uptrends. The Shanghai Composite is on the verge of a big move lower while Emerging Markets continue to consolidate in their downtrend, perhaps ready to reverse. The Volatility Index continues to be biased to the upside but not in a strong manner. These influencers create the environment for the Equity Index ETF’s SPY, IWM and QQQ to continue their bounce higher. Their charts are more cautious though with the SPY looking the best followed by the QQQ and finally the IWM. Once again the US Dollar Index and Treasuries will likely drive Equities, so a strong reversal back higher by either or both would change the equity bias back to bearish for the week. Use this information as you prepare for the coming week and trade’m well.

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