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Breakouts
for Jan 26th: The
first pick, BFT, featured as a Subscriber play for December 29th; the stock has inched over $7.73 resistance on the second day of above average volume trading. Thursday could be a big day for the company as its AGM is to be held in Chicago (the stock was up in after hours trading); given the uncertainty I have raised the stop price from the December 29th recommendation. If the breakout holds I will be looking for the measured base move target. A confirmation break in on-balance-volume lends weight to the bullish cause. A move to $8.00 would rank as double top breakout on the point-n-figure chart and go someway to reversing its long term decline. The
second pick, BECN, eventually confirmed its November 14th head-and-shoulder reversal and completed the right-hand-side of its current base on modest volume. The company had recently announced a couple of acquisitions which have helped shape the new base. On-balance-volume has shifted in favor of accumulation, supporting the bullish divergence in the MACD trigger line. The point-n-figure chart shows a triple top breakout from January 10th with a suggested price target of $49 - I am looking for a measured move target first. The third
pick, RVSN,
is a relatively illiquid stock which has enjoyed some heavy volume buying spikes. The stock was briefly mentioned in a TradingMarkets.comarticle (as bullish) last Friday. The cue to buy will be a break of $18.89, supported by a breakout in MACD trigger line resistance. The stock rides an ascending triple top breakout from January 9th with a price target of $19.50, although this should be easily surpassed given recent volume interest. Ride the trend.
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