Breakouts for July 6th: Markets may have closed up but prudence should remain the name of the game. As the air thins for this rally I have featured three gold member picks which have made fresh breakouts. The first pick, BJS, featured as a gold member pick for February 17th. After a 2-week consolidation the stock closed over $54.30 resistance on light volume. The company is set to announce earnings on July 26th. Declining volume for the rally off $46.43 is a concern - but if on-balance-volume can break resistance this concern would be mute. A solid Investor Business Daily ranking supported by Monday's triple top breakout on the point-n-figure chart gives the impetus to the bulls. The point-n-figure target of $72.00 is close to where I have based my price target. The second pick, LUK, consolidated into a triangle after a solid move above $36.00 base resistance. The consolidation developed in the absence of stock related news. Technically, we should look for a measured move up - which closely corresponds to my initial price target from February 24th. Technicals remain bullish as marked by a MACD trigger line over the bullish zero line, a slow stochastic (although weaker) above the bullish mid-line, and on-balance-volume over resistance. As a bonus, the stock supports a strong Investor Business Daily ranking - even given its prior sell off. The third pick, PPS, featured as recently as June 8th as a gold member pick. The stock continues to support strong technicals - most notably, a sharply advanced on-balance-volume line. The MACD trigger line is on a 'sell' signal, but its position over the bullish mid-line marks it as a consolidation. A Lehman's Brothers sector upgrade helped boost the stock to new closing highs. A lack of overhead resistance suggests this should get to $44 - but I am looking for a test of psychological resistance of $50 based on sector momentum. The point-n-figure chart target is $53.00.

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"IBD" refers to Investors Business Daily

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