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Breakouts
for October 11th: Three current plays for review. The first pick, COGN, featured as a Breakout play for September 25th. The stock cleared a small bullish flag - facilitating a higher stop price to the initial position. The breakout continues the August 29th double top breakout on the point-n-figure chart and is on track to reach its first target of $42. But the stock now trades inside a band of resistance between $36 and 40 dating back to the first half of the year - so this could slow further advances. Another potential hindrance is the break of MACD trigger line support - this could favor sideways action beneath $39.50 resistance. Patience could be key. The company recently filed its 10-Q last Wednesday. The second pick, CROX, has seen a combination of strong price and technical action. Tuesday's gains followed its presentation at the Puper Jaffray / Integrated Corporate Relations Conference. I have maintained the original price target, although the stock did trigger an ascending triple top breakout on the point-n-figure chart with a price target of $56. An alternative stop (to give the trade more room) could be placed on a break of $32. The third pick, ADAM, looks a little rich at Tuesday's close and would probably benefit from GTC buy orders down to $7.31.
The stock sliced through the 200-day MA on heavy volume in the absence of company specific news. Tuesday's gains did not trigger any changes in the point-n-figure chart, which still holds to a bearish target of $0 (i.e. it has much work to do). Tuesday's gains were supported with a MACD trigger 'buy', an on-balance-volume breakout and a large swing in trend as measured by the crossover in +DI/-DI.
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