Top Trade Ideas for the Week of April 11, 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 for continued moves higher in Gold and Crude Oil as well as continuations lower for both the US Dollar Index and US Treasuries. The Shanghai Composite should continue its run higher but the Emerging Markets may need to consolidate before further upside. The Volatility Index should remain tame. The Equity Index ETF’s all show signs of a potential pullback or consolidation with the QQQ looking the strongest and the IWM the weakest. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m well.

(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:

American International Group, Ticker:$AIG

AIG is in a bear flag after a series of moves lower. There is previous support at 34.00 from November 2010. If it breaks below that support then it can move lower to support near 30 and possibly the long time support/resistance area near 27.80 below that. The Relative Strength Index (RSI) is pointing lower but the Moving Average Convergence Divergence (MACD) indicator is flat lined, offering no bias. A stop can be placed just above 34.00 after entering on a break below it. With nearly 1.8 billion shares outstanding short interest is not an issue.

Allied Nevada Gold, Ticker:$ANV

Allied Nevada Gold is in a bull flag after a series of runs higher, all of between 5 to 7 points. It now looks to be ready to break the flag higher with violate increasing Friday. If it gets over 41 then the target on a Measured Move (MM) is to between 46 and 48. Adding weight to the move is that it is the largest holding in the Junior Miners ETF, $GDXJ.

Athersys, Ticker:$ATHX

Athersys moved higher quickly off of a base near 2.50, ad is now in a bull flag with a top near previous resistance at 3.00. If it can break above 3.00 then there is resistance at 3.28 and then 3.50, just below the target of a MM at 3.60. A stop can be placed at 2.88, just under the flag.

Dorman Products, Ticker:$DORM

Dorman Products touched the 23.6% Fibonacci line and has bounced down. It looks to be accelerating now, with a steeply falling RSI and a MACD that is crossing negative. Look for it to continue to at least 37.29, the 38.2% Fibonacci level, or the area of the 100 day or 50 day Simple Moving Averages (SMA’s) below at 36.82 and 36.02 currently. Below that there is also previous support near 35.00. The short interest is only 2.5% but it is a very thinly traded stock averaging only about 70,000 per day. Place a stop just above the 40.40 area of previous resistance from two weeks ago.

Exact Sciences, Ticker:$EXAS

Exact Sciences had a big run up from a base near 5 in early March to 7.50. It is now in a bull flag working off an overbought RSI and looks to be bottoming for the next leg up. The target for the bull flag if it were to base here near 7.00 is approximately 9.50. There may be resistance along the way at 7.50 followed by 8.00 and 9.24. Use the 6.94 Fibonacci level as an entry or stop.

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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