Top Trade Ideas for the Week of May 31, 2011: The First 5

After reviewing over 800 charts, I have found some good setups for the week. This week’s list contains the first five 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 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.

(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:

AGCO, Ticker:$AGCO

AGCO is building a megaphone pattern, or expanding wedge, after a run higher. With the Relative Strength Index (RSI) pointing higher and the Moving Average Convergence Divergence (MACD) indicator closing towards a cross to positive, it looks to head to the 50 /100 day Simple Moving Average (SMA) cross above at 53.18. If it can get through that then it has resistance at 56 and then 60.

BB&T, Ticker:$BBT

BB&T is bumping up against strong resistance at 27.50. If it can get through this time then there is resistance above at 28.10 and 29 before the Fibonacci level at 29.70. The RSI sloping higher and the MACD about to cross up both support a move higher.

Sotheby’s Holdings, Ticker:$BID

Sotheby’s is rising off of a recent base at 40. The MACD is about to cross positive and the RSI is pointing higher, both supporting more upside. Overhead it has resistance at the gap between 44.50 and 45.19, before the 100 and then 50 day SMA’s. Through both SMA’s sees a run to 50 again.

Canadian National Railway, Ticker:$CNI

Canadian National Railway is testing overhead resistance at 78.10, with a target on a Measured Move (MM) higher at 84 if it can get through. The RSI rising supports upside and the MACD is about to cross positive supporting the case.

Delcath Systems, Ticker:$DCTH

Delcath Systems is moving higher off of a bottom at 5.60. The MACD is about to cross positive and the RSI is rising, both supporting more upside. It has resistance at 6.20 and if it can break through that then 6.40, 7.12 and 7.34 higher before a potential move to 8.

Up Next: The Rest

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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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