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Breakouts
for July 28th: Two current Subscriber picks and one fresh breakout for review. The first pick, SPAR, did feature on Thursday's Breakout scan but was first to appear as a Subscriber pick for June 2nd. The stock managed a clean break of $16.10 resistance on heavy volume following strong earnings. The gain also triggered a bullish catapult breakout on the point-n-figure chart with a target of $37. I have opted for a modest projected price target, but the latter price would not look unreasonable if upside volume kicked in around 500K a day. Nice technical support with a breakout in on-balance-volume and a MACD 'buy' trigger. Follow the trend. The second pick, NWL, is working out from a base and was first featured to Subscribers for July 18th.. Thursday's gains were pegged back a little into the close but the large breakout gap on heavy volume is an indication of a shift in favor of the bulls and a likely challenge of $28.18 resistance. There was no change on the point-n-figure chart pattern but the stock holds to an upside target of $33. Although on-balance-volume has yet to confirm the move in price there was a bullish cross of the mid-line in stochastics and a MACD trigger 'buy' to keep the bulls happy. Investment grade stock with a 3.4% yield. Thursday's gains were driven by earnings. The third pick, CLB,
posted its breakout following earnings. The large breakout gap will likely be tested as strong gains over 4 days are digested. Patient buyers may find joy using GTC buy orders down to $63.15. There was good support in the technicals with a breakout in on-balance-volume and a resistance breakout in the MACD. On-balance-volume scraped into overbought territory. The point-n-figure target of $94 should be obtainable if on the next retracement the breakout gap holds. Thursday's gains triggered a double top breakout on the point-n-figure chart.
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