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Breakouts
for August 28th: Just two picks for Monday. Even with the markets working well off July lows (fewer than 10 stocks popped up on the scan - on a good day its 40+), there remains little of interest on relatively heavier buying volume. The first pick, ANST, gapped against a prior loss of support, to leave behind a bear trap, helped by strong earnings. Watch for a pullback to gap support at $21.50, patient buyers may find some joy here. Low range candlesticks will provide an alternative, low risk, entry opportunity. Friday's gains were enough to trigger a double top breakout on the point-n-figure chart, pushed by new reaction highs in on-balance-volume (= strong accumulation). I have opted for the point-n-figure price objective - but whole number price targets can be used to take profits. There is no overhead resistance. The second pick, MTLG, had released earnings in early August. The stock was upgraded in late July by Matrix Research. Friday's gains, followed Thursday's higher volume accumulation, enough to drive a break of $15.92 resistance. There are issues of the 200-day MA acting as overhead resistance. But, strong supporting technicals, the MACD in particular, should see continued buying momentum, to help push a test of $23.29 resistance. The developing chart pattern, looks similar to one formed in May 2005. A repeat of this, should lead to a test of $23. The point-n-figure chart still holds to a bearish price target of $7.00. It would take a move to $19 to negate (which would also coincide with a break of the 200-day MA). The third pick, is no candidate.
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