Top Trade Ideas for the Week of April 25, 2011: The Rest

Here are The Rest of the Top 10 for the week:

Cost Plus, Ticker:$CPWM

Cost Plus is back in the sights as it is approaching resistance at 11.50 from March. If it can get through that level then the next level of resistance is at 12.50 from December. With the Relative Strength Index (RSI ) rising and the Moving Average Convergence Divergence (MACD) increasing the way higher has good support.

Dollar Tree, Ticker:$DLTR

Dollar Tree broke above resistance at 57.0 on Wednesday and held on a retest Thursday. If it continues to hold over 56.50 then it has a target on a Measured Move (MM) at 62.50-63.0. The MACD is improving an nearing a turn positive and the 50 day Simple Moving Average (SMA) has just crossed up through the 100 day SMA both adding to the bullish case. Watch the RSI as it is moving sideways, but in bullish territory.

Dow Chemical, Ticker:$DOW

Dow Chemical is breaking out above a 3 month channel between 34 and 39. The target on a MM for this break out is 44 and if it clears that a second MM target at 54. With a rising RSI and MACD that is crossing higher to support a further move upward, this can be played long, with a stop just below the break out level at 39.00.

Liz Claiborne, Ticker:$LIZ

Liz has shown a broad rounding bottom since January and now looks ready to move higher and fill the gap to 6.83. Through 6.83 there is resistance higher at 7.07 and then 7.75. The RSI is sloping higher and the MACD is increasing to support more upside.

Vertex Pharmaceuticals, Ticker:$VRTX

Vertex Pharmaceuticals has been in a tightening consolidation since gapping higher in late February. It is near a minor double top at 50 now but has a rising RSI and an MACD that is about to cross higher. If it can get through 50 then it has resistance at 51 and then a MM to 54. Above that there are only additional MM to 61 and 66 and 75 before it can start attacking the 2000 peak where it capped out at 100.

Up Next, Bonus Idea

The First 5

These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks like higher prices for Gold and a bias higher for Crude Oil and US Treasuries. The US Dollar Index looks to continue its death march lower with the Shanghai Composite and Emerging markets moving to the upside. Continued subdued volatility will be supportive to more upside for the equity index ETF’s, SPY, IWM and QQQ, but being mindful that all three printed potentially bearish reversal candles on Thursday. Continued caution on the long side. 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.)

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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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