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Breakouts for Jan 31st: The first pick, CGI, broke resistance on the back of strong earnings. Technicals regained bullish momentum having dipped below such levels during the January sell off. The stock has already reached its point-n-figure target of $53.00, so the current price target is based on a projection of the prior move from October. The break of $62.25 looks to have negated a potential reversal head-and-shoulders pattern, the neckline of which is shown by the upward slanting blue hashed line. The second pick, KRON, also moved on earnings, but was unable to hold its earlier gains towards Friday close. The stock's technical picture is slightly stronger than CGI's as marked by new highs in on-balance-volume which confirm the price breakout. Point-n-figure chart shows a strong uptrend with a price target of $63.00. GTC buy orders below $50 may be good enough to pick up shares on a test of the breakout gap. The third pick is MCK, pushed on with mixed earnings. The weakest of the three stocks on a technical basis - slow stochastics remains below the bullish mid-line, but the MACD trigger line crossover above the bullish zero line and the on-balance-volume crossover of the 20-day moving average gives the balance towards the bulls. Risk can be defined as the purchase price relative to $30 support based on a projected point-n-figure target of $57.00. The stock is still part of a point-n-figure double top breakout dated to the 27th of October.

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