Top Five Trade Ideas For The Week Of November 12, 2012
Dragonfly Capital | Nov 13, 2012 02:07AM ET
Visa (V) has been stair stepping higher since moving out of consolidation between 115 and 120 in the spring. The latest bull flag carries a Measured Move higher to 149 on a break over 145 and the price objective on the 3-box reversal Point and Figure chart (PnF) takes even higher to 156.
The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) is positive, both supporting further upside. There is no resistance over 145 and support lower is found at 136.50 and 132.75 followed by 131.40 and 126.85.
Trade Idea 1: Enter long on a move over 145 with a $2.50 trailing stop.
Trade Idea 2: Buy the December 145 calls (offered at $3.05 late Friday) on the same trigger and trade them like the stock.
Trade Idea 3: Buy the December 145/150 Call Spreads ($1.80) on the same trigger.
Trade Idea 4: Sell the December 130 Puts (84 cents) on the same trigger.
Trade Idea 5: Buy the December 145/150 Call Spread selling the December 130 Put (95 cents) on the same trigger.
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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