Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

(bearish ideas)

JOY - Shares are breaking down. a drop under $70.00 could be a bearish entry point.

CP - CP appears to be building a new pattern of lower highs and lower lows. Today's close under $75.00 could be a bearish entry point. look for support near $72.50 and $70.00.

DE - This stock is also forming a bearish pattern of lower highs and lower lows.

(bullish ideas)

UNP - A rally past $110.50 might be a bullish entry point but trade small since shares still have a bearish trend of lower highs.

MWE - This energy pipeline stock has rallied back above resistance at its 50-dma and the $60.00 level.

UA - Traders bought the dip at prior resistance near $98.00 this morning. The bullish trend remains intact.


NEW DIRECTIONAL PUT PLAYS

Royal Gold, Inc. - RGLD - close: 59.09 change: -1.19

Stop Loss: 61.70
Target(s): 55.50
Current Option Gain/Loss: May60p: + 0.0% May57.5p: + 0.0%
Time Frame: exit prior to earnings on May 3rd.
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of RGLD trade with the gold miners although it's not actually a mining company. RGLD owns royalties on precious metal producing properties. Currently the gold miners are breaking down. Today saw shares of RGLD break support at the $60.00 level.

I am suggesting small bearish put positions at the open tomorrow. More conservative traders may want to wait and watch for a failed rally near the $60.00 level as their entry point instead. Our target is $55.50.

Please note I do have a couple of concerns. We don't have a lot of time. RGLD is due to report earnings on May 3rd and we don't want to hold over the report. Secondly the GLD gold ETF has dipped to possible technical support at its 300-dma. The metal could bounce right here. More cautious traders may want to wait for the GLD to close under this technical support before considering bearish positions on RGLD. FYI: The Point & Figure chart for RGLD is bearish with a $51 target.

(small positions) - Suggested Positions -

buy the May $60 PUT (RGLD1219Q60) current ask $2.60

- or -

buy the May $57.50 PUT (RGLD1219Q57.5) ask $1.45

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (confirmed)
Average Daily Volume = 584 thousand
Listed on April 23, 2012