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Breakouts
for April 24th: The first pick, CXTI, is a current Subscriber pick for April 2nd and a Breakout for April 11th. Monday's close saw a minor break of $7.23 resistance on relatively light volume, but ever improving technical strength, most notably in the bullish trend [+DI; ADX > 20 and rising = ever increasing bullish strength]. There was no company specific news to account for the gain, but by creating a new reaction low late last week it is now possible to raise the stops for the two previous features, and help define risk for a new position. The breakout also completed a cup-and-handle pattern with a measured move target around $9.50. The point-n-figure chart holds to an April 10th double top breakout and target of $12.25. The second pick, CMO, first featured as a Breakout for August 29th and again for March 22nd. The break of $10.18 appears to be minor given the lack of volume or news, but one should certainly raise stops for the two earlier positions to $9.50 or above (at minimum). The new price target is derived from a measured move forward, although major resistance is unlikely to kick in until the stock reaches $14. The point-n-figure chart attributed a double top breakout back to January 2006, with a price target of $19.50. The latter is optimistic given resistance at $14 and again at $17.50 but long term holders can take note. The stock does pay out a small yield of 0.8%. The third pick, SAFM, is a current Breakout pick for April 2nd. Monday's break is another (lower risk) opportunity to get into the stock, in addition to a chance to raise the stop for the earlier April play. Recent news focused on potential opportunities to use animal fats to produce biofuel, but the current trend from December appears governed by earnings. Gains in on-balance-volume combined with overbought stochastics suggest steady accumulation. The MACD trigger line is on a fresh 'buy' trigger - although its recent history has been relatively flat. The point-n-figure chart has marked an ascending triple top breakout from March 15th with a price target of $58. Resistance of $47 relates to 2005 summer highs and is the basis for my current price target. The stock pays a 1.3% yield.
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