Top Trade Ideas for the Week of April 23, 2012: The Rest

Here are the Rest of the Top 10:

AIG, Ticker: $AIG

AIG, $AIG, was the darling two weeks ago and is now looking tired. The Relative Strength Index (RSI) is bullish but trending lower and making lower lows with a Moving Average Convergence Divergence (MACD) indicator that has just crossed negative. A move under 31.80 triggers the downside and pullback with long term support at 27.60.

Altera, Ticker: $ALTR

Altera, $ALTR, broke down hard Friday out of a symmetrical triangle after reporting earnings. The target of the breakdown is 31, another 4.25 lower. The falling and bearish RSI and MACD crossed negative support a move lower, as does teh long red candle ending near the low. There is some volume to work through at 34 before it is free fall.

Great Lakes Dredge & Dock, Ticker: $GLDD, Weekly

Great Lakes Dredge & Dock, $GLDD, has been rising off of support at 4 since October, now at resistance at 7.40 after a quick pullback the last few weeks. It has support of a bullish and rising RSI and a MACD that has avoided a cross negative and looks now to head higher again. A bit of a longer term play, hence the weekly chart, it has the previous high from February 2011 in sights.

McKesson, Ticker: $MCK

McKesson, $MCK, is consolidating after a gap higher on April 11 following news. As it consolidates it has a RSI that is bullish and holding strong while the MACD is positive. Both support more upside, and a push over 91.42 has a Measured Move to 96.50, with a test at 100 likely after that. Failure to hold over 90 would be a short entry. This name reports April 30th.

Red Hat, Ticker: $RHT

Red Hat, $RHT, has been building a bull flag after leaping higher following earnings. The RSI is holding bullish and drifting back higher, but the MACD is negative and growing more so. A break over 62 has a Measured Move to 77 and a failure to hold 58 likely finds a move lower to close the gap from earnings.

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After reviewing over 900 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 as the market heads into the last full week of April broadly biased to the downside. Gold may have found a bottom while Crude Oil may be ready to move back higher. The US Dollar Index is consolidating and shows no desire to move hard either way while Treasuries show if they really want more upside. The Shanghai Composite is in baby bull mode with Emerging Markets continuing to leak lower. The Volatility Index shows no signs of powering higher yet. These influencers line up to support downside or consolidation. The charts of the Equity Index ETF’s SPY, and QQQ agree with this diagnosis on a short term basis but the IWM is looking a bit better with potential to break consolidation higher. Use this information as you prepare for the coming week and 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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