Top Trade Ideas for the Week of May 31, 2011: Bonus Idea

• Posted by Greg Harmon
• on May 31st, 2011

Here is your Bonus Idea with links to the full Top 10:

North American Palladium, Ticker:$PAL

the North American Palladium chart looks like a rocket ship ready to launch. After building a 2 week base working off an oversold Relative Strength Index (RSI) and bringing a Moving Average Convergence Divergence (MACD) indicator back from extremes, the RSI is now sloped steeply higher and the MACD is crossed positive. The start of a move Friday happened on big relative volume as well. The next level of resistance is at 4.25 followed by 4.45 and then 4.75 on the way to the gap at 5.05. A gap fill to 5.53 could bring in even more buyers. Use a stop near 3.60.

The First 5

The Rest

(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 more upside for Gold and a drift higher for Crude Oil. The US Dollar Index looks headed to test the recent lows while US Treasuries continue higher. The Shanghai Composite looks to continue lower after falling out of the symmetrical triangle while Emerging Markets head higher toward resistance. With continued stable and low Volatility the Equity Index ETF’s are diverging, with the IWM looking better to the upside while the SPY and QQQ need to break resistance to join it and so are looking better to the downside. This divergence should resolve soon but could also lead to more sideways action. 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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