Top Trade Ideas for the Week of August 7, 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 ready to consolidate, if only for a couple days within the uptrend while Oil may consolidate before continuing the fall. The US Dollar Index looks to drift higher in the 73 to 76 range while US Treasuries pullback. The Shanghai Composite appears headed lower toward support and Emerging Markets may consolidate or bounce a bit before doing the same. The spike in Volatility looks to have more room to the upside but shows signs of pulling back at least early in the week. The Equity Index ETF’s SPY, IWM and QQQ appear set to bounce early next week, but the SPY and IWM charts look broken on many timeframes and headed lower. The QQQ is a bit of an enigma as it has maintained a hold at support. The QQQ’s continuing to hold and move higher would be a signal that the broad downturn may be ending. On the other hand if the SPY and IWM continue lower as expected in the intermediate term the QQQ will likely join them lower. 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:

Allegiant Travel Company, Ticker: $ALGT

Allegiant Travel moved higher off of a bottom Friday confirming the doji from Thursday. Concurrently the Relative Strength Index (RSI) jumped higher and the Moving Average Convergence Divergence (MACD) indicator began moving back to the zero line. This happened on big volume as well. This looks good for more upside. If it can get over 43.50 it has resistance at 44 followed by 45 and then 47.20. Short interest is high in this name at 30% so if it gets moving a short squeeze could ensue.

American Tower Corp, Ticker: $AMT

American Tower held up very well last week over support at 49. The RSI remains near the mid line but with the MACD growing negative on increasing volume. If it gives up support at 49 then there is support lower at 48, followed by 47, and then 46. But if it continues to hold and gets up over 50 then it has resistance at 51 followed by 52.20.and 54. Play which ever trade it gives you.

CTC Media, Ticker: $CTCM

CTC Media on the other hand fell below support by Friday. If it continues lower, under 16.80 then there is support lower at 16.30 followed by 15.30 and then 13.80. The RSI and MACD both support a move lower, and short interest is not an issue. Place a stop loss near 18.20 initially and then move it lower as the price drops.

Nevsun Resources, Ticker: $NSU

Nevsun Resources is heading to the bottom of the channel at 5.12. If it breaks under the channel then there is support lower at 4.84 followed by 4.70. If it holds though then there is resistance higher at 5.40 followed by 5.7 and then 6.10 before the channel top at 6.54. The RSI and MACD suggest more downside in the short term.

NVE Corp, Ticker: $NVEC

NVE Corp is in a symmetrical triangle and consolidating just above the bottom rail. If t can move higher over the top of the flag at 56 then it has resistance at 57 followed by 59.50 and 60.70. The RSI is flat but the MACD is improving. Place a stop at the bottom of the flag if you are entering immediately and raise it to just be 56 on a break higher. When it gets over the Simple Moving Averages (SMA) at 56.77.

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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