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Breakouts
for September 14th: Three current plays for review. The first pick, CSTR, is on its third appearance for its latest, right-hand-side base. Patient buyers may find fills using GTC buy orders down to $27.16. Gap traders will have likely sold at intraday highs, but all supporting technical indicators favor a continuation of the trend (or at least, a good chance of further upside should prices push down from here). William Blair initiated coverage of the stock last week, rating it "Outperform" - this was the most recent news for the stock. A move to $30 would trigger a double top breakout on the point-n-figure chart, and negate the current bearish target of $14. The second pick, FISV, recently featured to Subscribers for September 1st, but Wednesday's action saw a key break of important resistance ($46.23), setting up a potential huge run, given Wednesday's break likely signaled the end of a 2002-2006 cup-and-handle pattern (see a weekly chart). The intraday push to $47 was enough to trigger a quadruple top breakout on the point-n-figure chart, with a quite reasonable target of $56. Similar breaks were seen in supporting technicals, such as the MACD trigger line and on-balance-volume. The stock was up on its purchase of InsureWorx Inc. The third pick, NWY,
featured to Subscribers for August 4th. Wednesday's gains saw the second consecutive day of higher prices; edging above $12.45 resistance, and setting up a potential run to breakdown gap resistance, around $15.50. Earnings were released at the end of August, so this week's action is an excellent confirmation as to what the Street thought of earnings. Adding to the bulls cause were fresh 'buy' triggers in on-balance-volume, and the MACD. The point-n-figure chart is of little help, and has much work to do if it is to signal the stock was going to make a concerted, upward run. Use the MACD and on-balance-volume indicators as leads.
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