Top Trade Ideas for the Week of February 22, 2011: The First 5

• Posted by Greg Harmon
• on February 20th, 2011

After reviewing 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 Saturday which looks for Gold to continue higher and crude Oil to decide it it wants 100 with a break of 88.50. The US Dollar Index will look for support and US Treasuries to maintain support both to avert disaster. The Chinese market looks higher with Emerging Markets continuing to consolidate with a bias higher if they finally break the range. Volatility looks to continue to be muted facilitating a continuation of the trend higher in the US equity ETF’s.

(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:

Freeport McMoran, Ticker: FCX

Freeport McMoran is falling through the up trend support. Under the the 100 day Simple Moving Average (SMA) at 52.71 it has support at 50.40 and then 47.52. The Relative Strength Index (RSI) is heading lower and the Moving Average Convergence Divergence (MACD) is starting to turn negative. Use the trend as a stop.

Fortress Investment, Ticker: FIG

Fortress Investment is flagging after a move higher. If it can get through 6.75 then the target on a measured move is 8. The RSI is solidly in bullish territory but the MACD is moving towards zero and about to cross.

Keycorp, Ticker: KEY

Keycorp has pulled back off of 9.75 for a second time but with a higher low. If it can hold support at 9.40 then it can try to move higher again, and if through 9.75 has a target on a measured move at 10.75. If it loses 9.40 then look for a move lower to 9.00. The RSI is bullish but the MACD has just crossed lower.

Penn Virginia Resource, Ticker: PVR

Penn Virginia Resources has been in a consolidation channel between 26.60 and 28.90 since December. It is now moving to the top of the channel with a bullish rising RSI and a MACD that has crossed higher. If it can get through 28.90 then the target on a measured move is 38.

USX, Ticker: X

USX broke through resistance at 61.20 this week, retested it as support and held. If that support continues then the target on a measured move is 71. The MACD supports a move higher and the RSI is in bullish territory, but is heading for a test of the mid line at 50. If the 61.20 level does not hold then look for support lower at the 50 day SMA at 57.74.

Up next The Rest

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus