Top Trade Ideas for the Week of February 14, 2011: Bonus Idea

Here is your Bonus Idea with links to the first 10 as well.

Tellabs, Ticker: TLAB

Tellabs had a mighty fall at the end of January. After rising off of the mat it tested the gap down level Tuesday and Wednesday last week and then broke through it higher into the gap on Friday. During this move the Moving Average Convergence Divergence (MACD) indicator bottomed and has just moved positive, and crossed up. The Relative Strength Index (RSI) is rising toward the mid line. Look for this stock to continue higher to the first resistance at 6.27, the low point from year end, with the 50 day Simple Moving Average (SMA), currently at 6.42, as the next resistance level on the way to the major resistance at 6.60 and a potential gap fill at 6.80. A stop could be placed at 5.55, just under the low of the Thursday pullback.

The First 5

The Rest

After looking at over 700 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 Friday which looks to bring a continuation of the bull market for US and Chinese equities and continued low volatility. Emerging markets will give a clue early in the week whether they can break the down trend. The US Dollar Index should continue higher with US Treasuries continuing lower. Gold may pullback again but looks higher longer term but Crude Oil looks to be heading lower.

(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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