Top 5 Trade Ideas: The Week of December 3, 2012
Dragonfly Capital | Dec 03, 2012 12:41AM ET
American Capital (ACAS) has been trading in the blue box for two-and-a-half months between 11.30 and 12. Now approaching the top of the zone it has a bullish and rising Relative Strength Index (RSI) and a moving Average Convergence Divergence indicator (MACD) that is positive and increasing to support a push higher. Friday’s Hanging Man candle though cautions against entering early.
Chicago Bridge & Iron (CBI)
Chicago Bridge & Iron (CBI) broke above resistance at 40 and the 200-day Simple Moving Average (SMA) last week. It has a rising and bullish RSI and a MACD that is positive and increasing to support continued upside.
Cabot Oil & Gas (COG)
Cabot Oil & Gas (COG) printed a Hanging Man candle a week ago Friday and has been moving lower ever since. Now on support at 47, it has a falling RSI and a MACD that is negative and growing to support more downside action. Short interest is also low at only 3%.
McKesson (MCK)
Mckesson (MCK) stair stepped higher out of a base between 86 and 89 reaching a top at 96 early in November. After a pullback it is testing that top again and with a move over has a Measured Move higher to 98. The rising and bullish RSI and MACD about to cross to positive support the upside case.
Motorola Solutions (MSI)
Motorola Solutions (MSI) is consolidating at 55 after moving higher out of a bull flag. It has a bullish RSI to support more upside and a flat MACD. A break over 55 carries a Measured Move higher to 57.75.
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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 Original post
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