Top Trade Ideas January 31, 2011: The First 5

After looking at over 700 charts, I have found some good setups for the week. This week’s list contains the first five of which are below, to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks to be decision time for Gold, and a continuation higher for Crude Oil. The US Dollar Index looks to move higher this week and US Treasuries looking lower. The Shanghai Composite is also at a decision point but emerging markets look to move lower. Volatility looks to rise in the short term, making it easier for the equity index ETF’s to continue their recent down moves within the uptrend. Sector Analysis showed that the strongest sectors are Energy and Industrials and the weakest is Consumer Discretionary.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Here are the first 5 ideas for the week, to get you started:

Abraxas Petroleum, Ticker: AXAS

Abraxas has been consolidating higher after a run up from 3 and now looks to be ready to break out higher. The Moving Average Convergence Divergence (MACD) is crossing higher. price is getting lift off of the rising 20 day Simple Moving Average (SMA), and the Relative Strength Index (RSI) bounced off of 50 and is moving up again. If it can get through resistance at 4.85 then it has potential on a measured move to go to 6.10.

Callon Petroleum, Ticker: CPE

Callon is moving higher through a retest of the recent top at 7.75. The MACD is increasing and the RSI is strong but not overbought. On a measured move it could reach 8.70.

Energy Solutions, Ticker: ES

Energy Solutions had a pullback off of the move higher Thursday but has strong support at 5.75. A continued hold can have it move up to resistance at 6.11 and through that the next level of resistance is at 6.72 followed by 7. The MACD is crossing supporting more upside, and a Golden Cross, the 50 day SMA crossing higher through the 200 day SMA, is occurring.

Nabors Industries, Ticker: NBR

Nabors Industries is testing the top of a two month channel as well as previous resistance near 24.50. If it can break through higher then the target on a measured move is 29.50. The MACD recently crossed higher and the RSI is strong but not overbought, supporting more upside.

Schlumberger, Ticker: SLB

Schlumberger After basing between 80 and 84 for a month and then raising the base to 84 to 88, Schlumberger is testing the top end of the range. If it can get through 88 then it could move up to 106 on a measured move. The RSI has remained in bullish territory and the MACD is neutral.

Trade’m well!

Up next, The Rest

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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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