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Breakouts
for January 4th: The first pick, ACV, recently featured as a Breakout back in November. Wednesday's breach of $22.20 resistance helped complete a 2-year cup-and-handle pattern and continue a September 11th ascending triple top breakout (with a point-n-figure chart target of $25.50). Technicals are modestly bullish, although none where able to match price with a new reaction high - this weakens the breakout, but certainly one should raise stops from the earlier position. The second pick, AZO, looks to be in the process of following through on its December breakout following earnings. The Motley Fool has run a number of articles which have been mixed on the stock; citing positive management but limited growth potential. Wednesday's rally helped confirm support of the December breakout gap, allowing for the raised stop price from the September 20th Breakout feature. Weakness has crept into the technical picture with a sizable bearish divergence in the MACD trigger line and weakening intermediate term stochastics [39,1]. However, on-balance-volume still favors accumulation. The stock has surpassed its point-n-figure target of $118, part of the September 19th ascending triple top breakout. The third pick, IDT,
is a swing trade Subscriber pick from October 18th. Wednesday's breakout confirmed the upside move making a test of $14.84 a good short term target. My target is derived from a measured move forward from the March-September rally. The stock has been hugging the 200-day; unfortunately, the move away from this average has been partnered with a "Death Cross" between it and the 50-day MA. A small number of share options were excercised by the CEO on Tuesday. The point-n-figure chart still has some way to go before reversing from its current bearish target of $5.00.
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