Breakouts
for Sep 14th:The
first pick, RHAT, first featured
as a Gold Member pick for July
5th. Tuesday's breakout was important as it breached November
2004 highs and completed the bottom of the current 14-month
base. Look for a move to test $28.00 resistance and watch
for a "handle" as the right-hand-side base develops.
Tuesday's breakout ranked as an ascending triple top breakout
on the
point-n-figure chart with a price target of $20.00. The stock
has merits as a long term hold and/or a dollar-cost-average
play. The second pick, EFJI, recently
featured as a Breakout for August
22nd. For the third time in 14-months the stock is challenging
$10 resistance and given the surge in on-balance-volume looks
well positioned to push past this key resistance. Favorable
comments from the Hodges
Fund demonstrates the popularity of this
stock. I have raised the original price target (which was
reached Tuesday) to $15 - a surge in buying once $10 breaks
could bring a move which exceeds $15 (look to $20-25 range
if volume looks good). A move to $10 would trigger a triple
top breakout on the point-n-figure chart
and negate the current (bearish) target of $3.00. The third
pick is, PDFS,
was drawn from my breakout scan. The stock survived an analyst downgrade from
First Albany but it wasn't enough to stop Tuesday's volume
move. The stock closed at new 4-year highs, continuing a triple top breakout
from July 20th with a price target of $32.50. A somewhat erratic on-balance-volume
is countered by a picture perfect "buy" from the MACD. GTC buy orders
down to $16.76 looks best bet here.
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