Top Trade Ideas for the Week of February 14, 2011: The First 5

• Posted by Greg Harmon
• on February 13th, 2011

After looking at over 700 charts, I have found some good setups for the week. This week’s list contains the first five of which are below, to get you started early. 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.)

Here are the first 5 ideas for the week, to get you started:

American Capital, Ticker: ACAS

American Capital has broken through resistance at 8.65, now support, and is now heading to 9.50. Jump on for the ride. The rising Relative Strength Index (RSI) and increasing Moving Average Convergence Divergence (MACD) indicator support more upside.

American Axle & Manufacturing, Ticker: AXL

American Axle found support of the 50 day Simple Moving Average (SMA) and is now heading higher to retest the 14.90 short term top. If it can get through then the next resistance is at 15.80 followed by 16.20. The MACD is improving and curling higher and the RSI is now moving higher off of the mid line. Both will support a move higher.

Beazer Homes, Ticker: BZH

Beazer Homes printed a bullish Dragonfly doji reversal candle Friday after touching support of the 50% retracement of the large down move. This was also a touch of the bottom Bollinger band. It is now ready to head higher towards resistance at 5.56. A stop can be placed at 5.09.

Edwards Lifesciences, Ticker: EW

Edwards Lifesciences continued its run clearing the previous high of 85. It is now moving higher to the Measured Move (MM) target at 100, based on symmetry with the previous move from 65 to 85. The positive MACD and rising RSI support continued upside.

International Coal, Ticker: ICO

International Coal is in an ascending triangle between the 50 day SMA and 9.65. If it can get over 9.65 has potential to 11.30 on the MM. With the MACD improving and bout to turn positive and the RSI in bullish territory, it has a decent chance.

Up next The Rest.

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