Top Trade Ideas for January 24, 2011: The First 5

After looking at over 700 charts, I have found some good setups for the week. This week’s list contains the first five of which are below, to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which looks to continue the bloodbath for Gold, the US Dollar Index and US Treasuries. Although Crude Oil looks to be heading lower there is a lot of support nearby. The Shanghai Composite and Emerging markets look headed lower too. The divergence in the US equity Indexes, with the large cap SPY doing better than the QQQQ which is doing better than the IWM also looks to continue, with the SPY looking higher, the QQQQ mixed and the IWM looking lower. Sector Analysis showed that the strongest sectors are Consumer Staples and Utilities with Materials and Technology the weakest.

(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:

AFLAC, Ticker: AFL

Aflac broke through the quadruple top resistance at 57.65 Friday. The Relative Strength Index (RSI) is moving higher and the Moving Average Convergence Divergence (MACD) indicator just turned positive and has crossed higher. If it continues to hold the break out then the first target on a Measured Move (MM) comes at 59.65 and then the second target is 64.

Atwood Oceanics, Ticker: ATW

Atwood Oceanics is pressing resistance at 38.25, a previous resistance level from April as well. If it can get through 38.25 then it has a target of 43 on a MM. The positive MACD and recently rising RSI support a move higher, as do the rising 50 and 100 day Simple Moving Averages (SMA’s).

Costco Wholesale, Ticker: COST

Costco is also pressing the ceiling at 73. If it can press through it it has a target of 81 on a MM comparable to that move from October through the end of December. The RSI is rising and the MACD is improving and about to cross, supporting a move higher.

Cost Plus, Ticker: CPWM

This stock is crashing. Cost Plus just lost support of the 50 day SMA Friday and is now looking for support at 8.72 from earlier this year. If it loses that then the next level of support is at 8 followed by 7.60. Both the negative MACD and falling RSI support more downside. A stop could be placed at 9.10.

Chevron, Ticker: CVX

Chevron is heading to 100, if it can get through 94. the RSI has been bouncing along near overbought and the MACD has been flirting with a move to positive, so this is definitely not a certainty. But the trend remains higher. Support can be found at 92.

The Rest

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.

blog comments powered by Disqus
Dragonfly Caps Blog