Top Trade Ideas for the Week of March 14, 2011: The Rest

Here are The Rest:

Endo Pharmaceuticals, Ticker:$EDNP

Endo Pharmaceuticals is testing resistance at the declining trend line for the 3rd time since November, this time with a tight consolidation range over all of the Simple Moving Averages (SMA’s). If it can break through and move over 36.60 it has resistance at 38.20 before moving on to a target on a Measured Move at 50. Use the resistance line which would then be support as a stop.

Corning, Ticker:$GLW

Corning printed a hollow red candle on Friday but below the 50 day SMA. This shows bullish price action intraday Friday even though the close was lower than Thursday. With the Relative Strength Index (RSI) in the low 40’s and trending lower and the Moving Average Convergence Divergence (MACD) indicator accelerating lower, it looks more likely to continue the fall. The next support lower is at the top of the gap at 20.45 and then 19.94 before stronger support at 19. A stop can be placed over the 50 day SMA at 21.38. Short interest for this stock is at 1.7 days of volume. If if does move higher then the next level of resistance will come at 22 before a retest of the high at 23.

51job, Ticker:$JOBS

51job was on the list last week and fizzled as it hit the 61.25 resistance level. But Friday it printed a Hammer reversal candle just under the 50 day SMA. If it is confirmed and holds over 56, then it can head back up to the 61.25 resistance level. Keep the stop tight as the RSI and MACD do not confirm any move higher, just the candlestick. On the short side if the 56 level does not hold then a move to the 100 day SMA at 52.84 currently is likely. There is near zero short interest on this stock.

Perrigo, Ticker:$PRGO

Perrigo has consolidated after reaching its measures move target of 77 out the channel break from October. With the consolidation range getting smaller it is time to watch for the next move higher. If it can get over 78 then it has an initial target on a measured move at 83. The RSI is firmly in bullish territory and the MACD is near the zero line. Look for the MACD rising with the break to confirm an entry. A stop can be placed at 77.

iPath DJ-UBS Sugar TR Sub Index ETN, Ticker:$SGG

The Sugar ETN fell from the 50 day SMA and through the 100 day SMA to support at the bottom of the rising channel. It held there Friday and finished at resistance now at the 100 day SMA. If it can get through that resistance at 89.53 then it has further resistance at 96 followed by 100.50 on the way to the top of the channel at 106. The RSI has held well near the mid line. Look for the MACD to turn higher as full confirmation of the move up. If it fails to hold the bottom rail at 86.50 then the next support is at 80 and then 75.

The First 5

Up Next: Bonus Idea

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

After reviewing over 700 charts, these ideas were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks like further consolidation for Gold Crude Oil and Treasuries, before they can all start to move higher. The US Dollar Index looks to continue lower. The Shanghai Composite and Emerging markets also look to consolidate further with a bias to the upside longer term. The Volatility Index is looking tired after testing higher and may push lower again, but not move much from where it is now. The equity ETF’s SPY, IWM and QQQQ all look set up to continue lower, despite finishing better on Friday.

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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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