Top Trade Ideas for the Week of July 11, 2011: The Rest

Here are the Rest of the Top 10:

Athenahealth, Ticker: $ATHN

Athenahealth is approaching longtime resistance at 47.40 after a pullback to the 200 day Simple Moving Average (SMA). Now over all of the SMA’s it also has a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) indicator that is increasing, to support further upside. On a mover over 47.40 it has resistance at 49 and then free air higher. It reports earnings on July 21st after the market close so prepare to protect any profits if a run lasts that long. Short interest is high at over 20% so a break above 50 could send it squeezing higher.

Human Genome Sciences, Ticker: $HGSI

Human Genome Sciences has been in a falling wedge since May and was in fact a short idea last week. It now may be showing signs of stopping and turning. The RSI is slowly trending higher and the MACD is slowly growing more positive. If it can continue to hold over 24.30 then a long trade looking for a move higher to resistance at 25, followed by 25.70, 26 and 26.50 is worthwhile. It also reports earnings on the 21st after the close so prepare accordingly. Short interest is high at near 10% so a squeeze is possible in this name as well.

MasterCard, Ticker: $MA

MasterCard is in a bull flag after a large move higher and an earlier bull flag. It has an RSI that is elevated and working off being technically overbought, but is not extended, and a MACD that is positive and large, but declining some. If it can break the flag higher then it has a target on a the first Measured Move (MM) to 330 and then a second MM to 360 wit a possible pause at 345-350. Earnings are not reported until August and short interest is not a factor in this name.

Deckers Outdoor, Ticker: $DECK

Deckers is back up at previous resistance between 94.75 and 97.00. It has a rising RSI and a MACD that is increasing supporting more upside. If it can get over 97.20 then it has a MM to 116.00. It reports earnings July 27th so it has some time to move, and the short interest is high at over 16% presenting the possibility of a squeeze.

Hershey, Ticker: $HSY

Hershey pulled back Friday after making new highs above previous resistance at 57.60. If it can hold over that resistance then it has a MM to 66. The RSI has been trending higher but curled Friday, so it would need to reverse, and the MACD is positive but flat. If it loses support at 57.60- then it can be played short to support at 56.25 and then 55.80 and 54.70 below that. It reports earnings on July 26th and short interest is negligible.

Up Next: Bonus Idea

The Best

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

After reviewing over 800 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 looks for Gold and Crude Oil to both continue higher. The US Dollar Index and US Treasuries to move higher towards resistance at 77.30 and 97.30 respectively. The Shanghai Composite and Emerging Markets also are biased to the upside, although both have resistance nearby. Volatility looks to remain stable and subdued allowing for the Equity Index ETF’s SPY, IWM and QQQ to continue higher. But each are showing signs of a pullback in the short timeframe that could translate into the weekly timeframe quickly, with Treasuries moving higher as a possible catalyst. Look for upside but keep the stops tight. A reversal could come quickly. 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.

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.

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