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Breakouts
for September 12th: Three current plays for review. The first pick, DFG, featured as a Breakout for July 27th. The stock posted modest gains throughout August, before Monday's solid move past $39.39 resistance counted as a Breakout. There was no company specific news to account for the Breakout. Monday's action continued the February 9th ascending triple top breakout, with a target of $55. Technicals hold a bullish stance, although the MACD trigger line is in the midst of a corrective phase - this will likely change on Tuesday. Follow the trend. The second pick, NWL, has been one of the strongest performing consumer staple stocks in recent weeks. The stock first featured for Subscribers on July 18th, and later as a Breakout for July 28th and September 1st. Monday's break of $28.18 resistance coincided with news it was to sell its Little Tikes unit for $250 million. The stock needs to reach $29 to trigger a double top breakout on the point-n-figure chart, but the stock is well set up to challenge the point-n-figure chart target of $33.50. I have raised the target price for a challenge of $40. Technicals are well positioned with new highs in on-balance-volume, a resistance break in the MACD trigger line, and a surge in +DI. Because of the big one-day gain, it may still be possible to get fills on a retracement back to $27.61. The third pick, EVVV,
featured to Subscribers for September 6th. Monday's break of $16.96 resistance signalled a fresh breakout, and negated the potential head-and-shoulder pattern I had marked on the chart in early September. Technicals are well placed with a MACD trigger 'buy', a steady accumulation trend in on-balance-volume, and a fresh bullish cross of the mid-line for intermediate term stochastics [39,1]. Resistance lurks at $18 and $20, and a move to $17.50 would set up a double top breakout on the point-n-figure chart, which holds to a current target of $25.50. Interestingly, coverage was initiated by Matrix Research as a "Strong Sell"(!), prior to Monday's surge.
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