Top Trade Ideas for the Week of February 14, 2011: The Rest

Here are the next 5 ideas for the week:

Cheniere Energy, Ticker: LNG

Cheniere is pulling out of a bull flag higher. If it can get over 8.50 then it has a target of 10.00 – 10.25 based on a measured move higher. The Moving Average Convergence Divergence (MACD) is positive and increasing and the Relative Strength Index (RSI) is rising again in bullish territory, giving support for a move higher. Protection against confirmation of the possible shooting star from Friday can be had with a stop at 8.09, the low from Friday.

Mobile Mini, Ticker: MINI

Mobile Mini moved out of a symmetrical triangle at the end of November to a base near 20. After losing that base at the beginning of the year on a pullback to 19.50, it has recently broken back above it and moved to a higher base near 21. If it can get above the new base, over 21.4, it has a target of 23 on a Measured Move (MM) equivalent to the last move higher. All of the Simple Moving Averages (SMA’s) are sloping higher, and the RSI is in bullish territory. The MACD however is flat and possibly about to move negative, so a stop at 20.75 is appropriate.

NCR Corp, Ticker: NCR

NCR broke above it’s long term support/Resistance line at 14.25 and made a move higher to 17. After consolidating there, and a slight pullback to 16.30, it made a second move higher to 19 where it is consolidating in a bull flag again. If it can break the flag higher then expect a move to 21.50 on a MM. The RSI is high but not yet extreme and working off the overbought condition, still a positive. The MACD is flattening but at a high level, leaving move room for upside action. A stop at 18.70 would protect against a break below the flag.

NPS Pharmaceuticals, Ticker: NPSP

NPS Pharmaceuticals has been falling from a top at 10. Thursday it printed a near doji, indicating indecision but often interpreted as a potential reversal, which was confirmed Friday by a strong move higher. Look for it to continue to 8.55 and if it can get through that level on to retest the high at 10. This is not a lay up as the MACD is negative and looks biased in that direction and the gap on the move up to 10 was never filled. But not all gaps are filled and the RSI reversed higher off of the mid line, remaining in bullish territory. Wait for the move over 8.55 to look for a run to 10, and then use 8.30 as a stop.

Regions Financial, Ticker: RF

Regions Financial is moving higher after breaking the recent top at 8. The next resistance is major Support/Resistance at 8.55 and then 8.75 and 9.00 if it can get through. The rising RSI and increasing MACD suggest that 8.55 is attainable. And the Golden Cross, the 50 SMA crossing above the 200 day SMA, just adds to the bullish story. Use 7.98 as a stop.

The First 5

After looking at over 700 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 Friday which looks to bring a continuation of the bull market for US and Chinese equities and continued low volatility. Emerging markets will give a clue early in the week whether they can break the down trend. The US Dollar Index should continue higher with US Treasuries continuing lower. Gold may pullback again but looks higher longer term but Crude Oil looks to be heading lower.

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

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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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