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stock option, Breakout test
Begin part 2 of 3
THE PLAYS:
Monday night play results:
DNDN: Tried to continue the move but needed a breather.
EFJI: Tested below the 10 day EMA but rallied back to hold the breakout.
MNST: Still working laterally though volume jumped handsomely.
TEN: Nice break higher on volume.
New Plays: A smattering of solid stocks from various sectors.
Upside:
Play Date: 04/27/2004
AMT (American Tower--$13.15; -0.40; optionable): Telecom
http://biz.yahoo.com/p/a/amt.html
STATUS: Breakout test. Exploded out of a 14 week cup base last week and rallied to 13.91 on the high. It is now coming back to test the breakout, holding the 10 day EMA (13.04) on the close Tuesday as volume jumped back up after falling off for two sessions. Excellent 6 to 2 accumulation (6 up price weeks on rising volume to 2 down price weeks on rising volume) in the pattern, showing money was moving in. First tests of breakouts are one of our favorite entry points.
Volume: 4.155M Avg Volume: 2.393M
BUY POINT: $13.42 Volume=4M Target=$16 Stop=$12.62
POSITION: AMT JV - Oct. $12.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/amt.html
Play Date: 04/27/2004
COH (Coach--$45.00; +0.92; optionable): Accessories, handbags, etc.
http://biz.yahoo.com/p/c/coh.html
STATUS: Breakout test. COH jumped four sessions back on strong volume, breaking out of a short 6 week cup base sporting strong 4 to 0 accumulation. Nice volume has jumped the past week as it rallied off the bottom of the base at the 50 day EMA (40.87). The base follows on the heels of a 3 month base formed December to February. Nice base on base patterns really clear out the sellers. Excellent money flow and a relative strength breakout makes this a good looking base.
Volume: 2.21M Avg Volume: 1.412M
BUY POINT: $45.48 Volume=2M Target=$53 Stop=$43.25
POSITION: COH HI - Aug. $45c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/coh.html
Play Date: 04/27/2004
MICU (Vicuron Pharma--$23.55; +0.38; no options): Drugs
http://biz.yahoo.com/p/m/micu.html
STATUS: Flat base. MICU is setting up for the breakout from a 14 week flat base that is the handle to a larger 32 month cup with handle. Accumulation in the flat base is a very strong 5 to 1, setting up a strong foundation for the breakout. Money flow is solid and moving up ahead of the stock price. Volume jumped Tuesday as the stock tapped the 18 day EMA on the low (22.83) and rebounded; a good recovery on volume shows buyers moving back in. It has taken a long time to set up, and we just need to be patient and let the breakout occur.
Volume: 686.434K Avg Volume: 306.863K
BUY POINT: $24.22 Volume=460K Target=$28.55 Stop=$22.58
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/micu.html
Play Date: 04/27/2004
MSSN (Mission Resources--$4.53; +0.16; no options): Oil and gas
http://biz.yahoo.com/p/m/mssn.html
STATUS: Breakout test. Oil and gas is performing well. MSSN broke out from a 23 week flat base in late March and has shot up the 10 day EMA (4.26). It is currently making its second test of the breakout, coming back to the 10 day on lower and lower volume, now coming in below average. Money flow remains very strong, running higher ahead of the stock price. Strong stocks on good breakouts make 4 to 5 bounces up off the 10 or 18 day EMA after a breakout. That leaves plenty of upside here for MSSN. We like that it has made the breakout, held the move, and is still showing very strong technical indicators as it runs.
Volume: 377.885K Avg Volume: 472.318K
BUY POINT: $4.74 Volume=615K Target=$5.75 Stop=$4.41
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/mssn.html
End part 2 of 3
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stock option
Breakout test
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