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Breakouts
for April 17th: The first pick, ADCT, is a current Subscriber pick for January 22nd. Monday's break of $17.53 resistance occurred with a modest rise in volume. On-balance-volume ticked higher in line with strong accumulation - strengthening Monday's soft volume in favor of the bulls. There was no company specific news to account for the new closing highs. Other technicals climbed higher with a new reaction high for bullish trend strength [+DI; ADX < 20 but rising = weak bull trend for now]. Meanwhile the point-n-figure chart is $0.27 short of generating a double top breakout which has a current target of $20. The second pick, UBB, a Subscriber feature for March 15th, broke $94.24 resistance but fell short of heavier resistance at $97.98 having crossed it intraday. This may be a continuation of April's push through the 50-day MA after the Brazilian Finance Minister quit. Technicals are nicely positioned with a resistance break in the MACD trigger line and a breakout in on-balance-volume. Sharp gains in bullish trend strength are offset by weakness in the overall power behind this trend [+DI; ADX < 20]. Monday registered as an ascending triple top breakout on the point-n-figure chart with a price target of $106. On the weekly chart this appears as a breakout from a 14-month cup-and-handle pattern. The projected target from this pattern is around $118 - I have set my target just below this level. The third pick, MTNA, was the only breakout scan pick to make the cut and even with that it is not a great candidate. There was a general disappointment with the quality of the breakouts, all the more surprising giving the technical significance of Monday's break in the main markets. This stock can be played as a move to resistance. The 200-day MA should develop into support with the 50-day MA nearby to lend a hand. The point-n-figure chart is neutral for a price pattern but has a downside target of $1.00. Technicals are reasonably firm with solid gains in the MACD trigger line to take it back above the bullish zero line. On-balance-volume (>20 MA) and trend strength (+DI > -DI) are on the right side of their bullish lines on overbought stochastics.
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