Top Trade Ideas: Week Of May 28, 2013 - Bonus Idea
Dragonfly Capital | May 28, 2013 08:08AM ET
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). 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).
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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