Top Trade Ideas for the Week of May 16, 2011: The Rest

• Posted by Greg Harmon
• on May 15th, 2011

Here are the Rest of the Top 10:

Honeywell International, Ticker:$HON

Honeywell is in a bull flag after a move higher off of the 50 day Simple Moving Average (SMA). If it can get over 62 it has a target of 66 on a Measured Move (MM). If it falls under the flag below 59.50 then there is support first at 57. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator pointing lower suggest that you look that way first.

Merck & Co., Ticker:$MRK

Merck is heading to resistance above at 37.55. If it can get through then there is resistance at 39 and then the 39.90 full retracement. If it rejects at 37.55 then the first support comes at 36.50 and then 34.87 lower.The MACD is waning and moving towards a negative cross and the RSI is stalling at an elevated level, suggesting the downside play will be the way.

NCR Corp, Ticker:$NCR

NCR is in an ascending triangle and approaching the top rail resistance at 20. If it can get over over 20 then it has a target of 22.50 on a MM. The RSI and MACD suggest there may be some downside first so if that happens look at a hold at the bottom rail and 50 SMA as an alternative long entry.

Constellation Brands, Ticker:$STZ

Constellation Brands is also in a bull flag or ascending triangle after a big move higher. If it can break the flag higher over 23 then it has targets on MM’s of 25 and 26. If it falls below the flag, under 22, the it has support at 21.50 followed by 21.

VirnetX Holding, Ticker:$VHC

VirnetX is in a symmetrical triangle after a big move higher. If it can get over 26 then it has resistance at 27, followed by 28 and then a target of 34. If it falls out of the triangle lower, under 23, it has support at 22 followed by 21 and then 19. The RSI and MACD suggest the path lower but wait to see which presents itself.

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 800 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 like more downside for Gold and Crude Oil. The upside path looks to continue for the US Dollar Index and US Treasuries. The Shanghai Composite looks to reverse higher with the Emerging Markets continuing lower. Volatility looks to remain in check. The Equity Index ETF’s will look to the QQQ for leadership to try to pull them higher, with the SPY and IWM looking weaker without any help. 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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