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Breakouts for Dec 28th: I have updated in tables featured on my frontpage the proportion of stocks which have reached their targets as per IBD rankings, and per month. It is clearly apparent that November and December breakouts are having a rough time of it. It should also be noted there has been only two 'quality' breakouts, i.e. stocks carrying an IBD rank of "A-" or higher, for the month of December - a marker for an intermediate top as more speculative plays come to the fore. This remains true for today's featured breakouts. The first pick, UBET, continued to benefit on news of added services. Today's breakout should be watched for closure on a retest of $4.50 support, a good place for GTC buy orders. Recent volume has been strong, so the bulls are in firm control. Supporting price action is a "buy" signal from the MACD trigger line and a breakout in on-balance-volume. Watch price action at $6.34 for a potential cup-and-handle, see weekly chart. The second pick, IMMR, broke past $7.00 resistance on the sale of $20m in convertible debt at a premium to stock price. It should be possible to get price fills on a retest of support, and if $7.00 fails, on a move into the price gap at around $6.85. If you are a short term trader I would look to buy at $7.11 and sell on a loss of $7.00. If you looking to hold for a longer period, then place some GTC buy orders around $7.10 and $6.85 to add to a small position taken from the open. Supporting the break of resistance with respect to price are breakouts in the MACD trigger line and on-balance-volume. Rising slow stochastics favors bullish momentum. Key resistance lurks at $10.30 - see weekly chart. Current price action suggests the start of a right-hand-side base, a good place for long term buyers to accumulate shares using the strategy outlined above. The third pick, SUNH, followed through on Thursday's breakout by moving above the last reaction high. This break also ends a triangle consolidation on the weekly chart (in favor of bullish positions). Watch for a move to $14.00 resistance, although point-n-figure charts still favor the bear with a price target of $2.00. The latter target will be negated on a move over $10.00. Cautious bulls may wait until then before buying. Decent technical strength led by a breakout in on-balance-volume. The price move came in the absence of stock related news.

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"IBD" refers to Investors Business Daily

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