Weekly Swing Watchlist 053111-060311

ADTN- This is a marginal setup that has seen quiet distribution and no real blip in volume on the light bounce. Only watching for now. Will set a 44 alert just in case ADTN breaks above the base. MACD and RSI are holding flat.

IBD Profile: http://www.investors.com/StockResearch/Quotes/-Adtran-Inc-ADTN.aspx?fromsearch=1

Hourly

BIDU- Chinese tech leaders (BIDU, SINA, SOHU) have been lagging the market but now may be the time to get in. BIDU held the 100 SMA, broke the DTL and the 23.6% fib. MACD is rounding and looking about to kiss, Stoch and RSI are heading up. Technically this is still a higher low. May look at an options spread on a dip back to 132-130 and stop out if it loses the 100 SMA or 125'ish.

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CRR- I tried to catch a nice break on Friday and was up a full 2 points on the trade but it started to fail and was stopped out flat. Finally held support at the 5/8 EMA and fell back inside the DTL. This thin stock is tricky so may try to options instead of trading common. Ideally I would like to see MACD continue rounding up and kiss as well as RSI get back above 50. Could try to get long here as long as it held the lower TL on the hourly or the 50 SMA.

Hourly

DECK- Back on the watchlist. Poked above doji string range but has not cleared recent high. Like this on a dip back to the 20 & 50 SMA around 89 with a stop under those MA's or possibly under the range low around 86.5 or you could set a looser stop under the TL. Setting a second alert for a break above 93.While MACD is in basement getting a cross and RSI is above 50.

30 minute

GENE- Sloppy flag with a bullish volume pattern post multi-month base/consolidation accumulation. Not my fav setup but will look to start a long on a break above TL resistance around 8.10 and add above 8.50 with a tight stop probably inside the wedge or the day's low when i take a position. Looking for 10+

Hourly

IPCM- I want to keep this stock on my radar just in case we see sector rotation in healthcare. The volume during this recent pullback is less than the rising channel volume. I want to try to catch a breakout and go here with 51 as trigger and a stop inside the down channel around 50 looking for 55-56 top of up channel resistance. Ideally I want MACD to kiss and RSI up above 50.

MELI- Nice setup, bullish volume pattern, relatively strong along with weekend IBD article has this Latin American e-commerce name on the watchlist. Looks like it's about to get a bullish MACD kiss, along with RSI pushing above 50, Stoch are consolidating. I would prefer to try to pick up a starter position around 85 (TL & 50 SMA) support and add above the DTL break. Setting alerts for 85 & 89.5. The measured move from this wedge is about 10 points so my target would be determined wherever the break occurs.

IBD Article: http://www.investors.com/NewsAndAnalysis/Article/573169/201105241747/MercadoLibre-Tests-Support-At-10-Week.aspx

Hourly

PLCM- Breaking out of down channel and now above the 5/8 EMA and the 20 SMA. Watching for continuation with MACD & RSI rounding up and bullish volume pattern holding. Looking to get involved on a dip back to the 5/8 EMA around 56 with a tight 1 point stop. Top of TL around 65 is target.

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QCOM- Another recycled name from last week's watchlist. Still looks ripe for a break above consolidation wedge/flag. Right now it's above the 5/8 EMA's, 20 & 50 SMA's. RSI is holding above 50 while MACD is flagging. I already have a position via options but setting an alert for 58.5 may take common too on a breakout of range and wedge.

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RAX- Another weekly favorite. Looks setup for higher prices. Strong close on Friday above the 5/8 EMA's and the 20 SMA. MACD kiss while RSI holding above 50 and sloping up. Not sure how I want to play this one but will look to buy common, calls or a vertical call spread on a dip to around 42.5 with a probable stop under 40 and an upside target of 48+

Hourly

SCCO- The selling in copper may be done short-term as China looks poised to rev up the growth and consumption engine. This copper miner broke out of falling wedge on Friday and ran smack into the 50 SMA and 23.6% fib resistance. I may try to jump on this train around 36 which would be a PBTBO pattern and stop out if it lose the 5/8 EMA and the 20 SMA maybe a 1-1.5 point stop. My upside target would be 40+ (200 SMA and the 38.2% fib).

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SFLY- I like this as long as it holds above the 50 SMA. Volume is extremely bullish and MACD is rounding up about to kiss with RSI holding over 50. Looking to get involved on a dip to around 55-54 with a 2-3 point stop and add on a breakout above 59.5 or top of base. First target would be around 66.

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VRTX- Still pulling back on lower volume to TL support and the 50 SMA. Stalking a 52 entry with a 50 probable stop. Looking for at least 56 but and ideal target at 60 (UTL resistance). MACD and RSI suggest this may need a little more digestion time.

Hourly