Top Trade Ideas for the Week of December 12, 2011: The Rest

Here are the Rest of the Top 10:

Comerica, Ticker: $CMA

Comerica, $CMA, is rising up to resistance at 27 and building a base there. As it sits there, the Relative Strength Index (RSI) is knocking on bullish territory and rising while the Moving Average Convergence Divergence (MACD) indicator is positive, both looking for more upside. Notice also that the 50 day Simple Moving Average (SMA) is about to cross bullishly up through the 100 day SMA. A break above 27 sees little in the way of resistance until 32 higher.

KLA-Tencor, Ticker: $KLAC

KLA-Tencor, $KLAC, is rising from a bull flag after making a higher high than that in November and now has the March highs in sight at 50.20. Above that there is clear air and a Measured Move (MM) to 58. The RSI is bullish and the MACD is positive, both supporting more upside. It also has elevated short interest at about 6% that may give it a tailwind higher.

Starbucks, Ticker: $SBUX

Starbucks, $SBUX, is another stock that is about to test resistance higher at the Triple Top at 44.50. As it arrives there the RSI is turning back up from a test of the mid line, but never bearish. The MACD has averted a negative cross and looks to be increasing again. A move over 44.50 has a target on a MM to 49.

Teva Pharmaceutical Industries, Ticker: $TEVA

Teva Pharmaceutical Industries, $TEVA, has been in a long downtrend but has been rising from the depths since October. It is currently building a bull flag near 40.50 with a MACD that is positive but fading and a RSI that is struggling to turn bullish after crossing the mid line. There are also some topping tails appearing that may signal a move back lower. Play it from the long side on a break over 40.50 with resistance above 42.20 at 44. On a break under the flag at 39.50 play it short looking for a retest of the 37 print.

Exxon Mobil, Ticker: $XOM

Exxon Mobil, $XOM, is also flying a bull flag, at 82, previous resistance from October. It has support higher from a bullish RSI, over 60 but stalling and a MACD that is positive, but showing some signs of fading. On a move over 82 it has a MM target of 90, while on a break of the flag lower under 79.70 a retest of the 74 area is probable. Be ready for either.

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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 looked as we head into Options Expiration week to be a bit more settled. Gold looks to consolidate in a range while Crude Oil is biased higher. The US Dollar Index and Treasuries are better to the upside but the trend in Treasuries is getting very weak so it could consolidate or pullback. The Shanghai Composite is on it s death bed while Emerging Markets look to continue lower. Volatility looks to continue its drift lower. This mix sets up for the Equity Index ETF’s SPY, IWM and QQQ to be biased to the upside slightly and their charts concur. The US Dollar Index strength will be the biggest risk to Equity upside in the coming week with Treasuries looking more peaked. If Treasuries gain strength then the slight Equity upside bias will be negated. 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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