Top Trade Ideas for the Week of July 5, 2011: The Rest

Here are the Rest of the Top 10:

AmerisourceBergen, Ticker: $ABC

AmerisourceBergen is moving higher and now over the 41.66 resistance level. It has a rising Relative Strength Index (RSI) that has been trending higher since the move up started and a Moving Average Convergence Divergence (MACD) indicator that has crossed higher. If it can get over 42.50 it has targets on Measured Moves (MM) to 45 and then 48.50. Earnings and short interest are not a factor.

Human Genome Sciences, Ticker: $HGSI

Holy cow a short! Human Genome Sciences has been in a descending wedge since the beginning of May. The RSI has been stalled under the mid line and the MACD is flat. A slight bearish tone. If it gets under 24.50 then it has support at 23.50 and then 21.65 below. Earnings released on July 18th could play a role as it has been slowly grinding lower. The bigger issue is that short interest is over 10%. The best play on this looks to be to buy August 24 puts for 95 cents, using a move higher above 25.42 in the stock as a stop to sell the puts. As the short continues to work lower, when it gets below 23.50 sell the 22 or 21 strike puts against it to create a put spread.

JDS Uniphase, Ticker: $JDSU

JDS Uniphase is moving higher off of a base near 15.20 and is now at the 200 day Simple Moving Average (SMA). The RSI is rising and the MACD has crossed positive and is growing supporting more upside. If it can get over 17.10 it has resistance at 18 followed by 19, and then 21 and 22. Earnings are not until August 22nd and short interest is not a factor.

Lazard, Ticker: $LAZ

Lazard has moved higher back to resistance at 38.12 after retesting support at 35.45. It has a rising RSI and an increasing MACD that support more upside. It if can get over 38.12 it has resistance at 38.58 followed by 39.50 and then 40.62. Earnings come out on July 25th and short interest is not an issue.

World Acceptance Corp, Ticker: $WRLD

World Acceptance has been moving higher since mid June with a trending RSI and a MACD that has run up to positive and increasing. Now above the over May 31st high it has resistance at 69 above. If it can get through 69 it has a target on a MM to 78. It has been lagging other pawnshops and has a high short interest at over 25%, so a move above 69 could send it running quickly as the shorts scramble cover.

Up Next: Bonus Idea

The Best

(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 for Gold to continue lower with Crude Oil biased to the upside but defined by the range between 88 and 102, I know that is big stay away from the middle. The US Dollar Index still looks headed higher to test the trend break in a bear flag, while US Treasuries continue lower. The Shanghai Composite is headed higher towards a test of the breakdown while Emerging Markets continue higher to resistance. The Volatility Index looks to remain stable allowing a run higher by the Equity Indexes toward previous highs from April. Remain cautious on any move lower that does not hold support from near Tuesday’s highs as this could trigger a major down move and a Head and Shoulders top. 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.

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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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