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Breakouts
for June 18th : The first pick, MMG, managed to close above $4.02 resistance announced sample results from one of its properties. The news was deemed good enough to drive the resistance breakout and was supported by an uptick in on-balance-volume. Other technical indicators are bullish and it is only a matter of time before there is a bullish MACD trigger 'buy' from the recent consolidation in this indicator. The weekly chart shows a broad symmetrical triangle dating back to May 2006 and if this follows through upwards it should reach my suggested price target. The point-n-figure chart is relatively neutral for a price pattern with a bearish target of $0 - suffice to say it would take a move to $4.75 to negate this target. The second pick, SGMO, is showing a consolidation triangle on the daily chart. Friday saw an end to 3-week consolidation but it was not enough to drive a break of the larger pattern. The point-n-figure chart is interesting as it shows a lengthy consolidation covering the last few years but contained by $8 resistance. The earlier move to $8.50 looks significant and if it can do so again it could go far. A move to $9.00 would be enough for an ascending triple top breakout. Technicals are on the rise but stochastics have yet to flip in favor of buyers and a net bullish picture for all four technical indicators. There has been no company specific news in recent days. The third pick, GRA, has featured numerous times before on this site. Friday's breakout looks to end an almost 3-month downward trend, contained by a larger 6-month advance. TradingMarkets.com listed the stock in its its Abnormal Put Volume action (bearish), but technicals are slowly on the mend, led by on-balance-volume - although other technicals still have plenty of work to do to follow suit. The weekly chart has shown a steady advance from $8 to 30 dating back to mid-2006 - so further downside, potentially to the 40-week MA - would not be out of the question, even with Friday's 'buy' signal. However, given the proximity to support and oversold stochastics it is a relatively low risk 'buy'.
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