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Breakouts
for Feb 6th : The
first pick, BEAV, pushed past resistance on a strong Q4. It should be possible to get fills on a retest of $22.26 support. The break in price was supported by a MACD 'buy' and an on-balance-volume 'buy' trigger. The move continues a rally started from $6 and an ascending triple top breakout from December 6th (see point-n-figure target). The point-n-figure target of $20.50 has been surpassed so I am looking to whole number resistance as a price target. The
second pick, DOVP, is working through a lengthy consolidation. The stock has bounced off $14 support and is on a run to $21 resistance. The stock closed above its 200-day/40-week MA respectively which should drive prices higher, although prior attempts in September and April 2005 failed. Technicals are stronger than they were in September which does suggest this run will succeed. The point-n-figure chart holds a target of $23.50. The company had announced the completion of Phase III trials using Bicifadine to treat Chronic Low Back Pain; results from this study are expected later in the year. The third
pick, OATS, completed a bullish 'three white soldier' combination which is bullish for the stock over an intermediate time scale (3 weeks - 6 months), but bearish in the near term (< 3 weeks). Ideally, try to buy a retest of $12.75 with stops on a loss of $11.75 - although I will measure my success assuming a fill at $14.07 with a stop at $12.88. Other than a staff recruitment drive for a new store to open in March there was no company specific news to have driven the three days of gains. Friday's action did register as a bullish triangle breakout with a price target of $29.50 - but take this one step at a time.
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