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Breakouts
for January 9th: The first pick, ONNN, featured as a Subscriber pick for December 7th, breaking $7.94 resistance to register a new breakout. The stock benefited from an upgrade by Lehman Brothers which followed an earlier upgrade by Credit Suisse. Technicals still hold plenty of bullish momentum even as the MACD retreats in an orderly fashion and bullish trend strength [+DI] maps a potential bearish divergence. Tuesday's action registers as ascending triple top breakout with a price target of $10.75 which I have opted to use. The second pick, DISH, has pushed a series of breakouts since it first featured here for July 18th. Stops should be raised for all previous positions to protect profits as the overall market continues to favor a downleg. On-balance-volume has supported continued accumulation as the MACD trigger line flatlined for the last couple of months. The stock continues a November 7th double top breakout with a price target of $56 - I have raised my original price target accordingly. The third pick, NVL,
was a Subscriber pick for November 17th but also qualified as a Breakout candidate as per volume and price action. The move was supported by a strong MACD trigger 'buy' (the signal coming well above the bullish zero line), a resistance breakout in on-balance-volume and bullish trend strength [+DI], with overbought stochastics (= strong bullish momentum). There is a bearish divergence in the MACD trigger line to be watched - this will be negated by an upside break - but overall, the technicals are favorable. Tuesday's move continues a September 29th ascending triple top breakout, but the point-n-figure chart shows no price target.
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