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Breakouts
for April 25th: The first pick, MCEL, most recently featured as a breakout for February 24th. Monday's breakout did not occur on any company specific news although the company did report receipt of a Notification of Allowance from the US Patent Office for two patent applications last week. I have raised the stop price but have maintained the target price. New highs in on-balance-volume confirm accumulation. There was no change in the point-n-figure chart and the target of $0.75 remains. The
second pick, KNSY, is a Subscriber pick from March 16th. The stock acquired the double benefit of qualifying as a volume breakout and as a Subscriber ADX play. The company gained on earnings (even though profit for Q3 was down 44%). The stock did manage a close above the 50-day MA and 200-day MA; so watch for a "golden-cross" soon. Monday's action ranked as an ascending triple top breakout with a price target of $39. A Breakout in on-balance-volume and a MACD trigger 'buy' add to the bullish picture. The third
pick, CLK,
was a straight forward volume breakout. The stock has the added benefit of a 2.1% yield. Monday's gains followed earnings and an upgrade from Barrington Research. GTC buy orders down to $12.21-12.41 provide the best opportunity to accumulate shares and help reduce the risk from this play. The point-n-figure chart holds to a (bearish) price target of $5.50. It will take a move to $15.50 to negate. Technicals at new reaction highs are very bullish for the stock.
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