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Breakouts
for October 27th: The first pick, TYL, first featured to Subscribers for July 28th. The stock has been riding the 50-day MA since breaking through $11.33 resistance. Today's gains followed after the company reported a 71% increase in Q3 earnings on Wednesday. Technicals are improving; on-balance-volume closed just shy of a breakout and the MACD is working off a 'buy' trigger, although there is a risk of a bearish divergence developing in the latter indicator. Thursday's gains continued a July 28th double top breakout on the point-n-figure chart with a price target of $24. I am looking for a stall out at $20. The second pick, TCX, is a long standing breakout dating back to December 2004. This high risk, speculative issue, looks to have breached resistance of a consolidation triangle on modest volume, while closing above the 50-day MA and 200-day MA. The breakout followed modest upticks in the MACD, on-balance-volume and +DI/-DI trend strength; only slow stochastics remain bearish. Earnings are scheduled for November 6th. Unlike many sub-$1 stocks, this company has had more positive quarters than negative ones. In the short term, look for a test of $1 resistance; but I have kept to the December 2004 target. Interestingly, the stock's point-n-figure chart shows a spread triple top breakout from January 11th with a lofty price target of $3.38 (don't expect that anytime soon). The third pick, SVNT,
first featured as a Breakout for August 25th. The stock formed a rising channel, interspaced with a second breakout on October 3rd. Last week saw the first attempt to break channel resistance, followed by Thursday's confirmed move. The stock even survived a downgrade by HC Wainwright. Earnings are scheduled for October 31st. Technically, it is the most bullish of the three picks; with a resistance breakout in the MACD trigger line and on-balance-volume. Overbought slow stochastics maintain bullish momentum, although declining bullish trend strength as measured by the falling ADX is a warning sign for bulls. The point-n-figure chart shows an ascending triple top breakout from February 17th, but has surpassed the chart target of $6.
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