Top Trade Ideas for the Week of April 18, 2011: The First 5

After reviewing over 700 charts, I have found some good setups for the week. This week’s list contains the first five 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 for Gold and Crude Oil to continue higher with the possibility of further consolidation first for Oil. The US Dollar Index looks to continue lower while US Treasuries test resistance higher. The shanghai Composite may pause before moving higher and the Emerging Markets in a range. Low and subdued Volatility should continue creating a good environment for the equity indexes SPY, IWM and QQQ. Both the SPY and IWM look to be heading higher but the QQQ may need further consolidation. 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.

(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:

Agrium, Ticker:$AGU

Agrium looks to be setting up to reverse as it approaches support at 86.50. It printed a bullish candle on Friday, with the real body engulfing the previous day and testing the 100 day Simple Moving Average (SMA) at 89.42. If it can get over that then the next resistance is at 92, the 50 day SMA, and then 95.00 before it can really fly. The Relative Strength Index (RSI) is starting to turn higher but the Moving Average Convergence Divergence (MACD) indicator has not yet. Use a stop at 87.80.

CBIZ, Ticker:$CBZ

CBIZ had a false breakout of a channel between 6.90 and 7.25 two weeks ago but is now retesting the channel top. If it can get over 7.25 then there is resistance in the area of 7.44-7.50 followed by 7.76. The MACD is improving and the RSI is turning up to support a move higher.

Cummins, Ticker:$CMI

Cummins is looking sick as it tries to cling to the support around the 50 and 100 day SMA’s just above it. If it falls under 105 look for a move lower to support at 100 and then 94.96, the 200 day SMA below that before retesting the previous low. The MACD is pointing lower and the RSI continues to point down as well. The short interest is only 1% and should not pose any complications. Place a stop just above the 50 day SMA.

Cirrus Logic, Ticker:$CRUS

Cirrus Logic printed a long legged Hammer, nearly a Dragonfly Doji, on Friday signaling a reversal of trend. It also closed outside of the lower Bollinger band and had relatively high volume. Look for this to fill the gap back to 18 and then there is resistance at 19 and 20 above that.

DaVita, Ticker:$DVA

DaVita has been in a bull flag in a hot sector for two weeks now. If it can get over 88 then it has a target of 93 first and then 96 on a Measured Move comparable to the two step process moving from just below 80 to 88. If you enter now then use a stop just under 86 and if you wait for the flag to break (my suggestion) then a stop near 87 would be appropriate.

Up Next, The Rest

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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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