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Breakouts
for November 14th: The first pick, SIM, has featured numerous times in the past; its first feature was back in November 2004 when the stock traded at $4.57. The most recent sequence started on September 6th; part of a lengthy rally that has extended well beyond its initial base breakout from $4 in the early part of 2006. I have stuck to my original price target, but of course have raised the most recent stop price. The stock published its 9-month operation results at the end of October. The MACD has held firm on each correction; but there is a substantial bearish divergence developing in bullish trend strength (+DI). Volatile on-balance-volume isn't helping. November 7th saw a double top breakout on the point-n-figure chart which has surpassed its target price of $19.25. The second pick, IFN, has enjoyed a slow burn rally since it featured to Subscribers for August 8th. The latest move clears $48.14 resistance and sets up a potential run to key resistance at $62.50 (at 52-week highs). Slow stochastics has been very firm in registering bullish mometum; but remaining technicals could best be described as neutral to mildly bullish. November 13th did see an ascending triple top breakout on the point-n-figure chart with a price target of $71. The fund announced results on November 1st. The closed-end fund reportedly pays a 11.6% yield (according to Yahoo!). The third pick, MAG,
is another mature rally play. The stock has worked off a large double bottom; $1.90 (May 2005) and $2.01 (June 2006), confirmed by break of $4.00 neckline resistance. Short term target is $6, but next key resistance level is $8.50. Technicals sharply improved in October with the MACD, on-balance-volume and bullish trend strength (+DI) all rapidly increasing. On Monday the company announced a new COO and CFO. October 6th saw a double top breakout on the point-n-figure chart with a bullish price target of $10.75.
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