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Breakouts
for August 4th: Three more current Subscriber plays for review. The first pick, CCK, featured as a Subscriber pick for July 19th. After trading a tight range/pennant for the last couple of weeks, the stock broke upside on a modest increase in volume. The move came in the absence of company specific news. Key resistance to watch is the 200-day MA at $17.45, but should this price break it will leave a clear run to challenge $19.42 resistance. Technicals hold to the bullish divergence in the MACD trigger line and new reaction highs in on-balance-volume and stochastics. The second pick, TYL, was a Subscriber pick for July 28th. The stock nicked a small break of a sideways price channel on a sharp improvement in the stock's technicals; notably, the MACD and the confirmation breakout in on-balance-volume. I have raised the stop from the initial feature, but held to the original price target. The point-n-figure shows a July 28th double top breakout with a price target of $24. The third pick, WL,
featured as a pick for June 19th. The stock broke from a bullish pennant on low volume. Thursday's gains were insufficient to mark a breakout on the point-n-figure chart (this will be achieved on a push to $45). Similarly, the point-n-figure chart does not hold to a price target or price pattern. Excellent technical strength is supported by new reaction highs in both the MACD and slow stochastics, not to mention a key break of resistance in on-balance-volume. Of the three breakout picks presented here, it has the strongest technical picture. The price breakout occurred in the absence of company specific news. The stock sports a 2.90% dividend yield.
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