Top Trade Ideas for the Week of August 1, 2011: The Best

After reviewing over 800 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 Saturday which looks for Gold and US Treasuries look to continue their moves higher in the coming week, with Crude Oil and the US Dollar Index continuing lower. The Shanghai composite looks to consolidate further in the middle of its range while Emerging Markets do the same at the upper end of their range. Volatility looks biased to the upside contributing to the view that Equity Indexes, SPY IWM and QQQ will continue lower. All look to remain within their ranges with the QQQ remaining the strongest much higher in its range. News driven breaks to the upside should be contained in the range with the possible exception of the QQQ’s. 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:

Feihe International, Ticker: $ADY

Feihe International has been rising off of a bottom at 6.75 in mid June. Now just short of the 100 day Simple Moving Average (SMA) it has support higher from the Relative Strength Index (RSI) heading higher and the positive Moving Average Convergence Divergence (MACD) indicator. If it can get over 8.65 then it will march higher with resistance at 9, followed by 9.50, 10, 11 and then eventually 12. Short interest in this name is near 10% so there is a possibility of a short squeeze. It has a week a bit over a week until earnings on August 9. Use a stop near 8.25 and move it higher as it passes through resistance.

GNC, Ticker: $GNC

GNC moved higher this week above resistance at 24.75. Now if it can get over 25.30 it has a has a Measured Move (MM) to 28.25. The RSI is elevated and rising but not extended and the MACD has just crossed higher, supporting more upside. Volume has been increasing as it moves higher as well. Short interest is not an issue. Use the break out as a stop.

Mellanox, Ticker: $MLNX

Mellanox is in a bull flag, after breaking over the two month resistance at 31.00. The RSI is strong and level near 70 and the MACD is large supporting more upside. If it can get over 35.20 then it has a MM to 39. Short interest is less than 1%. Use the break out as a stop.

Target, Ticker: $TGT

Target leaped higher in early July and has held up over 50.40 since, holding the gap. It is now approaching resistance at 52 and if it can get over 52 it has resistance at 53.10 followed by 55.5-56. The MACD is about to cross up, and the RSI is turning higher on big volume Friday. Earnings are not reported until August 17 and short interest is not an issue. Use a stop near 52 on the break higher.

Ultrapar Holdings, Ticker: $UGP

Ultrapar has moved higher off of a base at 17.25 and now over resistance at 18. It has a rising RSI and a MACD that has just crossed higher supporting more upside. If it can get over the 18.35-18.5 area it has resistance at 19 and then 19.75. Use a stop just under the 18 support area.

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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