Breakouts for Nov 11th: Although the markets had a sterling day - I have decided to focus on current Breakout plays which had made bullish moves. I remain concerned Thursday's buying had little to do with shrewd investing. The first pick, CL, breached near term resistance at $53.41, but still has larger resistance at $53.81 to break. The company had released earnings on November 1st which were $18m up on the same quarter last year. The heavy volume selling which followed failed to break support (hence the distribution pattern in on-balance-volume); instead prices reversed to force a test of resistance. If markets can maintain their momentum we could see a breakout early next week. Thursday's close completed a bullish three white soldier candlestick combination. Four year resistance lurks at $57; an attempt in 2003 to break this failed - will 2005 be any better? The play remains similar to that of July 22nd. The second pick, POS, has developed a small handle at $27 resistance. The stock featured in late October as part of a near term base breakout; a larger base covering most of 2005 is on the verge of been broken if prices push through the narrow sideways consolidation in existence now. A move to $28.00 will be enough for a double top breakout on the point-n-figure chart. Earnings had been reported before the initial breakout. The stock sports excellent technical strength; most notably a surging MACD trigger line. Stock just needs volume. The third pick, MEDI, has been a frequent player to this site. The stock most recently featured for October 26th. There are some bearish concerns creeping in; [1] declining volume into rising prices points to an increasing lack of demand, and [2] a potential bearish divergence in the MACD trigger line - although this is offset somewhat by the 'buy' trigger. The Motley Fool had good things to say about the company most recently. November's micro-handle does provide traders and investors with a point to raise stops, or place stops if looking to buy. The point-n-figure chart shows an ascending triple top breakout from November 2nd with a modest price target of $41; a test of $50 should be possible here.

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