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Breakouts
for April 16th: The first pick, CVO, was featured in a Motley Fool article dated April 3rd about under appreciated companies. The stock first featured to Subscribers for December 28th and continues to perform well within the rally which kicked off in 2004. Certainly the stop price should be raised from the original feature, in addition to the relatively low risk entry here. I have raised the target for a test of psychological resistance at $30. Technicals have come off a recent MACD 'buy' trigger and a fresh breakout in on-balance-volume. April 3rd saw an ascending triple top breakout on the point-n-figure chart with a higher price target of $35.50. The second pick, ASX, has traded within a tight range since gapping higher to $6 in November 2006. The 4-months of tight action sit well within a larger 1-year base, making Friday's breakout particularly enticing for bulls. The point-n-figure chart holds to a November 24th double top breakout and target of $9.00. I have opted for a measured move target. The higher volume break of $6.13 is not the only thing operating in its favor; the fresh MACD trigger 'buy' and supporting breakout in on-balance-volume also provide ticks in the bull column. Earnings are unlikely to cause a hiccup as the company reported last Monday. The third pick, GGBM, fell just shy of breaking $4.07 resistance and perhaps is best viewed as watch list material until this level breaks. A backtest of $3.50 would provide an alternative entry point. There are excellent technical merits with a resistance break in slow stochastics and MACD trigger line, with new reaction highs for on-balance-volume and bullish trend strength [+DI: ADX > 20 and ticking higher = rising bullish]. The point-n-figure charts holds to an April 13th breakout and target of $6.75 although the the weekly chart is shaping a volatile double bottom and could see some weakness before charging beyond $4.32 resistance. The 200-day MA/40-week MA is another resistance level to consider. The company announced the gigahertz frequencies in which its WiFiber products operate are being opened for commercial use in UAE and Australia.
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