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Breakouts
for May 7th: The first pick, SNCI, is a current Subscriber feature from March 23rd and a Breakout feature for April 9th. Friday's gains just about registered as a new high breakout, coming as they did on higher volume. It certainly should be viewed as an opportunity to raise the stop price from the earlier positions. A potential earnings hiccup is not on the cards after the company announced a Q1 profit last Thursday. Technicals are well placed, even as the MACD trigger line eases from frothy levels its histogram is rising in line with an upcoming 'buy' signal for the trigger line. The point-n-figure chart is looking somewhat extended from the January 31st double top breakout and its target of $22.75 is somewhat ambitious given the proximity of major resistance at $12.50. The second pick, JAV, last featured as a Breakout for March 14th. The stock followed the mid-March momentum move upwards with a 2-month, declining volume consolidation. This looks to have completed on Friday's breakout. The pharmaceutical company announced last Wednesday it was planning a public offering of 7.1 million shares. Technicals are net bearish and won't turn net bullish until there is a MACD trigger 'buy' so there may be some sideways action as traders duke it out between $7.44 resistance and support derived from former declining resistance (connecting March-April highs). The point-n-figure chart holds to a $11.25 price target and is supported by a weekly chart which shows strong buying volume since the stock broke $4 in December 2006. Follow the trend. The third pick, SPEC, is a follow through breakout after March's earnings release given there was no direct news relating to Friday's gains. The push above $14.50 resistance was enough to trigger an ascending triple top breakout in the point-n-figure chart which has an upside target of $17.00. The breakout had the dual benefit of a fresh MACD 'trigger' buy in conjunction with a resistance breakout in on-balance-volume. Bullish trend strength ticked higher [+DI; ADX > 20 and steady = well established bull trend in play] as intermediate term stochastics [39,1] regained overbought levels. Although relatively illiquid (12 M Float) the stock has enjoyed reasonably good buying volume. The stock should be good enough to see a test of $20 whole number resistance (and possibly more).
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