Top Trade Ideas for the Week of May 28, 2013: Bonus Idea

• Posted by Greg Harmon
• on May 28th, 2013

Here is your Bonus Idea with links to the full Top Ten:

Regions Financial, Ticker: $RF

Regions Financial, $RF, has been consolidating in a bull flag after a move higher over the 7.75 base in April. The touch at the 20 day Simple Moving Average (SMA) Thursday and then confirmation higher Friday signals more upside as does the bullish Relative Strength Index (RSI), but the Moving Average Convergence Divergence indicator (MACD) is rolling lower. Some divergence showing. There is no resistance higher until 9.65 back in December 2008. Support is found below at 8.93 and 8.50 followed by 8.25 and 8. The Measured Move higher out of the bull flag takes it to 10.75.

Trade Idea 1: Buy the stock on a move over 9.25 with a stop at 9.10.

Trade Idea 2: Buy the June 9 Calls (offered at 27 cents late Friday) on a move over 9.25.

Trade Idea 3: Buy the July 10 Calls now (6 cents) like 1080 others did Friday.

Trade Idea 4: Buy the August 8/10 bullish Risk Reversal (free).

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After reviewing over 1,000 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, heading into the shortened unofficial first week of Summer sees some nervous caution in the markets. Gold looks to consolidate with a downward bias while Crude Oil churns in the tightening range. The US Dollar Index seems ready for a pullback in the recent uptrend while US Treasuries are biased lower in their consolidation. The Shanghai Composite looks strong but Emerging Markets are biased to the downside. Volatility looks to remain benign keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite short term pullbacks and recent new highs. Their charts show more caution with a further pullback or consolidation likely. Use this information as you prepare for the coming week and trad’em well.

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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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