Web fallondpicks.com

Breakouts for Dec 15th: The first pick, CKR, featured as gold member play on Aug 16th but failed to reach its short target by $0.70. The subsequent reversal consolidated into a handle until todays breakout. The sharp gap up should provide an opportunity to buy a pullback to $13.05. Today's move came off the back of strong earnings. Technicals up to this point had favored weakness, so today's breakout has yet to be confirmed by breaks of resistance in MACD or on-balance-volume. The price target is drawn from a projected base target. The second pick, WITS, first featured as a breakout on Sep 20th. Today's volume surge came in the absence of stock related news but completes a 2-month cup-and-handle pattern. Point-n-figure charts project a target of $25.50 which I have used - but one could also use a measured target of $22.15 drawn from the July-Oct rally added to $14.12 lows. Technicals are good, although the MACD trigger line could still develop a bearish divergence, and on-balance-volume has not yet marked new highs. The third pick, LCRD, is a base breakout play. The stock is working off a heavy sell off in the summer, but has managed to build a strong right-hand-base on reasonable volume. Point-n-figure charts project a target of $19.00, which is close enough to psychological $20 resistance and 52-week high resistance of $21.37. Technicals have marked a new high in on-balance-volume, and a MACD trigger line riding just below resistance following a crossover buy signal.

Back to top

Back to top

Back to top

"IBD" refers to Investors Business Daily

Sample daily newsletter

User id: member email address password: "gold"

Allow 24 hours to set up web site access

12 months for $119 (save 33%)

6 months for $79.99 (save11%)

$14.99 monthly by credit card