Top Trade Ideas for the Week of April 25, 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 Saturday which looks like higher prices for Gold and a bias higher for Crude Oil and US Treasuries. The US Dollar Index looks to continue its death march lower with the Shanghai Composite and Emerging markets moving to the upside. Continued subdued volatility will be supportive to more upside for the equity index ETF’s, SPY, IWM and QQQ, but being mindful that all three printed potentially bearish reversal candles on Thursday. Continued caution on the long side. 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:

Boeing, Ticker:$BA

Boeing has been in a rising channel and tested the top Thursday printing a Doji Star. The Relative Strength Index (RSI) is rising and Moving Average Convergence Divergence (MACD) indicator has just crossed positive. All of the Simple Moving Averages (SMA) are sloping higher. This is set up to move higher out of the channel. If it can break the channel top near 76 then there are targets of 79 first and then 87 on Measured Moves (MM). If however it rejects as it has done several times previously, then there is support lower at 73 and then 72.17 and 69.82. Play it whichever way it goes you.

Biogen Idec, Ticker:$BIIB

Biogen Idec went parabolic on Thursday, but ended up printing a Shooting Star reversal candle with massive volume. The RSI is now at 93+ and the MACD is rising. It is well outside of the Bollinger Bands (BB) and the intraday action Thursday was very bearish. This is set up to move lower. If it gets under 99.30 then there is not support until 87 and cold go much lower. Use a stop near 100.

Comerica, Ticker:$CMA

Comerica has been in a down trend and looks to continue that into next week. The RSI is sloping downward and the MACD has crosses lower. If it can get under support at 36 then the next level of support comes at 35 and then 33.20. A stop can be placed near 36.75.

Capital One Financial, Ticker:$COF

Capital One broke through resistance at 52.93 on Thursday with strong volume and looks to go higher. The RSI is steeply sloped but still has a lot of room before being overbought and the MACD has just crossed positive. The first target higher on a MM is at 54.50 and then the second at 65. Use the breakout level as a stop area.

ConocoPhillips, Ticker:$COP

ConocoPhillips has been in an ascending triangle between the 50 day SMA and resistance at 81.11 since early March. It is now testing that resistance again. As it approaches the RSI is sloping and rising upward and the MACD is about to cross higher. It looks strong with all the SMA’s sloping higher. If it breaks through then the target on a MM is 90. Use the breakout area as a 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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