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Breakouts
for May 25th: The first pick, PQ, edge over $13.95 resistance on increased volume as one of the few stocks to push higher on the day. I would certainly use ths opportunity to raise the stop from the earlier May 4th Breakout. The stock has enjoyed excellent accumulation as measured by on-balance-volume and a steady increase in the MACD trigger line. If the stock finishes where it is now, or higher, by Friday it will mark a breakout in the weekly chart. The point-n-figure chart shows a double top breakout from March 26th with a price target of $21.50. I have held to the original price target. The second pick, CAS, priced a 4.3 mln share offering at $33 a share which gave the impetus for bulls to drive a breakout. The break of $34 completed a double bottom at $30.68 and $30.26 which should see a test of $38 in a short term. The weekly chart looks the best with a 7-month cup-and-handle, breaking from a band of resistance between $32.50 and $35 if the stock can hold above $35 by Friday's close, leaving plenty of room to challenge $43 resistance. Good technical support with a new reaction high in on-balance-volume, building off a recent MACD trigger 'buy'. Bullish trend strength is looking to reassert itself but has a little way to go [ADX < 20 but rising]. Thursday was significant in that a double top breakout was triggered in the point-n-figure chart with a price target of $41. I am looking for a measured move forward assuming a break of $43 resistance. The third pick, FXEN, has already got the monkey of earnings off its back when they were released in early March. The stock broke from a short 2-day period of tight trading, providing a good low risk entry opportunity. Bullish technicals are measured by an on-balance-volume breakout and sharp upswings in the MACD and bullish trend strength [+DI; ADX > 20 and rising]. Significant resistance lurks at $12.50 which is where the point-n-figure target lies from the January 17th breakout.
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