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Breakouts
for July 20th : The first pick, CHU, inched a new closing high to the extent the June 15th stop price can be raised, along with a new projected price target. For those looking to give the trade a little more room there is the reaction low at $16.72 and/or the 20-day MA which has held as support from April. There was no company specific news to account for the new 52-week high. Technicals are led by the very strong accumulation trend in on-balance-volume. The MACD trigger line is in consolidation mode with stochastics overbought and trend strength bullish [+DI; ADX > 20] if weakening a little. The point-n-figure chart holds to the March 20th double top breakout and has a target of $32.50. The second pick, RWC, is a prior Subscriber pick for May 22nd and June 14th. The stock finally made it to the 200-day MA which may be a cue for some sideways to downward action, making $5.25 a good place for GTC 'buy' orders. The test was combined with a MACD trigger 'buy', overbought stochastics, increasing bullish trend strength [+DI; ADX < 20 but rising], and steady accumulation trend. There was no company specific news to account for the test of the 200-day MA. If the stock can hold Thursday's close or more by the end of the week it will have registered a break of the 40-week MA and would be well placed for a challenge of 2006 highs around $11. The third pick, CRNT, has been a sterling performer with the May 1st and May 21st Subscriber picks well in the money. The current stop gives some room for maneuver although those looking to lock in profits could take a more aggressive stance at, or close to, $13.19. Earnings are due on July 23rd so for those who don't like to hold after a stock has run as much as it has in recent months should take some profits - a gap below the stop would be bad. Technicals are all bullish with no indication of a bearish divergence from MACD, stochatics or on-balance-volume. Only bullish strength points to some weakness as the ADX falls into the 40s from a high of 60 [+DI > -DI]. The point-n-figure chart is in need of a pullback with the move from $4.25 coming without a single 3-box reversal.
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