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Breakouts
for May 8th: It was another day of takeover candidates on the breakout scan - not a good sign given their association with rally ends. The first pick, GCOM, has pushed itself up against $13.70 resistance on tightening demand. The small doji at resistance is a good place for a raised stop price from the original April 27th Breakout play. Potential buyers should wait for a break of $13.70 before entering. I have not raised the former price target. Technicals may be leading price with resistance breakouts for the MACD trigger line and on-balance-volume - two very bullish indicators. Bullish trend strength increased to the upside in support of buyers [+DI; ADX > 20 and rising]. Follow the (overextending?) trend. The second pick, URRE, is a current Breakout play for April 9th and a Subscriber play for March 9th. Monday's move is a modest break of declining 3-week resistance which should see a challenge of $10.85 resistance. One reason for today's feature is the larger than expected drop in technical strength during this short pullback. Technicals are net bullish but there are concerns; the MACD trigger line has breached the most recent reaction low and slow stochastics, and bullish strength have weakened. Price action trumps technicals so Monday's action is a buying opportunity, just don't be afraid to sell if this was to drop below $9 (I have used a higher stop to protect profits from the earlier two positions). The point-n-figure chart target of $16.75 holds in the absence of a p-n-f price pattern. Earnings are scheduled for May 10th. The third pick, VLCM, broke upside from a small bullish pennant in the absence of company specific news. The lows of the pennant are a good place to set a higher stop for the April 4th Breakout play and February 26th Subscriber play. Technicals continue to push higher, aided by sizable gains in bullish trend strength [+DI; ADX >20 and rising], a rising accumulation trend in on-balance-volume and a new reaction high in the MACD trigger line. The only negative are the higher highs on declining volume. The point-n-figure chart target of $54 is derived from the April 23rd ascending triple top breakout.
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