Top Trade Ideas for the Week of March 28, 2011: The First 5

After reviewing over 700 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which looks to bring better prices for both Gold and Crude Oil, and continuing devaluation of the US Dollar Index but with the potential for it to start the week higher. US Treasuries appear to be consolidating with a bias lower. The Shanghai Composite and Emerging Markets are both biased higher, but with the expectation of a continued consolidation on the Emerging Markets side. The Volatility Index looks biased lower, with tight upside risk, and will allow for the SPY, IWM and QQQ to continue higher, with all three mindful of a lower close Monday reversing this bias.

(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:

Atlas Air Worldwide, Ticker:$AAWW

Atlas Air Worldwide broke through support at 62 in February and then retested it in March. Now it is moving higher again and ready to break through resistance at 70. If it can get over 70 it has resistance at 73.19, the high from February, and then a Measured Move (MM) to 84. The rising Relative Strength Index (RSI) and bullishly crossing Moving Average Convergence Divergence (MACD) indicator support a move higher. A stop can be placed at 67.

AmerisourceBergen, Ticker:$ABC

AmerisourceBergen is running higher off of the 50 day Simple Moving Average (SMA). Based on a MM from previous moves the target for this run is to 42.4 – 44. The Bollinger bands are expanding to facilitate a move higher and the positive MACD and RSI also support more upside.

iPath DJ-UBS Cotton TR Sub Index ETN, Ticker:$BAL

The Cotton ETF, BAL, has had a series of steps higher since August 2010. Based on the MM from these previous moves eh current run looks to stop at 122-134. The RSI remains in bullish territory and the MACD is improving towards a positive cross. A stop can be place just under the 20 day SMA .

Cognex, Ticker:$CGNX

Cognex is running higher off of support at the 200 day SMA. The RSI is crossing above the mid line and the MACD is growing more positive. Look for it to continue higher to resistance at the cross of the 50 and 100 day SMA’s at 29.25, 1.25 higher, all aboard.

Helix Energy Solutions, Ticker:$HLX

Helix Energy Solutions is heading for a third try at resistance at 17 and its first since April 2010. if it can get over 17 there is a vacuum to 24.87 from September 2008. The MACD supports more upside as it is growing more positive. The RSI though is a bit overbought technically and the starting to curl down. If it rejects at the resistance level then it can be played short with support at 15.76 from earlier this month and then the 50 day SMA at 13.82.

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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