Breakouts for May 15th: Breakouts at oversold conditions have a better chance of been profitable. Friday's action certainly pushed the markets to short term oversold levels, the question is whether any of these three breakouts can ride along with a bounce in the indices? The first pick, AOB, broke to new reaction highs but remains contained by larger resistance at $5.78. ADX hasn't quite registered a new uptrend (ADX <20), neither has on-balance-volume broken to a new high (but Friday's buying volume was well above average), but remaining technical indicators are in the green helped by Q1 earnings. Friday's gains also followed a period of sideways consolidation which ended on a positive test of the 40-week MA. The point-n-figure chart shows no price pattern but has a target of $9.75. The second pick, IMCL, followed through on a May 10th bullish triangle breakout on the point-n-figure chart following earnings. The break in price was supported by a breakout in the MACD trigger line and resistance in on-balance-volume. The point-n-figure target of $56 is close to resistance at $58, with the first challenge likely to come at $49. The stock is working through a base and it could be a couple of years before a challenge on all-time highs of $86 is made. The third pick, JTX, broke $31.71 resistance after a bounce off the 50-day MA. Technicals are modestly bullish with a 'buy' trigger in the MACD and a move above slow stochastics mid-line. The stock surged on guidance. There is some concern with a potential bearish wedge in the weekly chart, but with no overhead resistance this might not be problematic. Patient buyers may find fills on a retest of new support at $31.71 (low $31s if morning selling continues from where Friday left off).

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For those who prefer to set their own price targets the table opposite represents the frequency for a given % return (taken from maximum highs) assuming a fill at at the stated "Buy" price on the open (i.e. the prior days close). The return per trade from 5% risk is typical of what my subscribers can expect from their picks. The return per trade from 10% risk is what one can expect from my free stock picks. Returns will be higher on fills below my "Buy" price

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96% of featured stocks turn a profit greater than or equal to break even, assuming a fill at the prior day's close. 91% of featured stocks return a profit of 1% or more assuming a fill at the prior's day close; 78% of picks return a profit of 2% or more. 92% of featured plays are completed within a 6-month time frame. Stocks which are still in play beyond 6-months are usually experiencing strong rallies. Returns will be higher on fills below my "Buy" price

Buy	Stop	Target	Support	Resistance	Risk:Reward	IBD
$32.72	$29.89	$49.11	$31.71	none	5.8	A

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"IBD" refers to Investors Business Daily

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