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Breakouts for Oct 8th: The first pick, FCEL, is in the early processes of developing a RHS base. The stock has closed above its 20- and 50-EMA weekly moving average. It had already confirmed the $7.16 low by breaking past $10.00, supporting a large bullish divergence in the MACD trigger line (it made higher lows in July as prices made lower lows). Interested traders in this stock would be well advised to read this article. The second pick, PSTI, has slowly clawed its way back to its 6-month high. Today's volume spike to the upside should see a test of $15.10 either tomorrow or Monday. On balance volume is strong, and the MACD trigger line - although below resistance - remains above the bullish zero line. Slow stochastics are heavily overbought, but it is not unusual to see stochastics overbought for long periods during times of strength. Run a tight stop on this should the breakout prove false as the next level of support is down at $11.70. The third pick, ROP, is in the latter stages of its rally. Although there is no overhead resistance, price targets should be confined to nearest psychological resistance (in this case $70). Technically, it is the strongest of the three stocks, with resistance breaks in MACD and on-balance-volume. The company held an analyst meeting today.

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"IBD" refers to Investors Business Daily