Top Trade Ideas for the Week of May 9, 2011: The Rest

Here are The Rest of the Top 10 for the week:

Lear, Ticker:$LEA

Lear pulled back after a run higher off of 46.16 support. Finding support at the 50 day Simple Moving Average (SMA) it retested the top near resistance at 52 on Friday. Despite the doji, it has a rising Relative Strength Index (RSI) and a positive4 Moving Average Convergence Divergence (MACD) indicator. If it can get above 52.70 then it has resistance at 56 on the way to a target of 59 on a Measured Move (MM). Use 52 as a stop.

LivePerson, Ticker:$LPSN

LivePerson crashed from a top at 13.50 finding support at 11.00. Thursday and Friday it printed doji candles and the RSI curled higher. The volume also went back down. Using 10.85 as a stop look for a move higher to the 100 day SMA which has also been previous resistance at 11.52. Through there the next stop is 12.10 and then 12.50.

McDonald’s, Ticker:$MCD

McDonald’s is close to completing a ‘W’ pattern. If it can get over resistance at 79 then the pattern completes at 80.28. Above that the next target on a measured move is 92. With this ‘W’ stretched a bit at 5 months this could take some time to attain. If you take it sell calls along the way.

Nova Measuring Instruments, Ticker:$NVMI

Nova Measuring has been in a channel since February between 9.00 and 11.00. As it approaches the top again, and above the mini resistance at 10.50, it has a rising RSI and a MACD that has just crossed up with increasing volume. If it can get through 11 then the target on a MM is 13.

Pepsico, Ticker:$PEP

Pepsico has completed a ‘W’ pattern and moved higher into a bull flag. If it can break above 70 then the targets on MM would first be 73 and then 78. Use 68.70 as a stop and under that you can reverse the trade short with a target of 68 and then 67, a retest of the ‘W’.

The First 5

Up Next: Bonus Idea

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

After reviewing 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 Saturday which looks for further downside if Gold gets below 1475 and upside over 1500. Also look for Crude Oil to continue lower with support at 97 but a move above 100 turning it bullish. The Dollar Index looks to continue higher next week along with US Treasuries. The Shanghai Composite looks to continue lower in the coming week along with Emerging Markets. Expect the Volatility Index to remain in a range between 15.50 and 22. The SPY and IWM look for more downside longer term with the QQQ more bullish. All of the Equity Index ETF’s will trigger buys on moves to new highs though after printing a series of higher highs an higher lows. 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.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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