Top Trade Ideas for the Week of July 5, 2011: Bonus Idea

• Posted by Greg Harmon
• on July 4th, 2011

Here is your Bonus Idea with links to the full Top Ten:

Dolby Laboratories, Ticker: $DLB

Dolby Laboratories is moving higher out of a base near 42. It has a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) indicator that crossed positive, both supporting more upside. As it moves higher there is resistance at 44 followed by 45.75 and then 47.50. Earnings are not released until August 5th and short interest near 2% should not be factors. Place a stop initially at 42.50 and as it passes through 44, raise it to 43.75 and trail it at about 25 – 35 cents on a solid move and hold over 44.

The Best

The Rest

(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.

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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