Breakouts for Oct 10th: A very tentative list of three breakouts. The last pick is the most dubious given the large % risk involved and would be best viewed as a watch play. The first pick, MTN, last featured as a breakout for May 6th. The stock had until recently kept a relatively tight profile until September's double lows. The company had reported a quarterly loss last Wednesday but this failed to dampen the spirits of bulls who were struggling to find quality moves in the face of widespread selling. Resistance breaks in the MACD trigger line and on-balance-volume supported Friday's price breakout. The point-n-figure chart highlights the vulnerabilities of this play with no major pullback since its double top breakout from October 26th 2004. Given the latter price objective of $31.00 I have opted for a measured move price target. The second pick, ACN, enjoyed a heavy volume gap breakout on better than expected earnings. The 6-month daily chart hides a broad sideways pattern visible on the weekly chart with resistance at $28.00. The point-n-figure chart shows no price pattern but holds a (bearish) price objective of $18.00. A move to $28.00 (although resistance on the weekly chart) would be good enough for a breakout on the point-n-figure chart. A breakout of resistance in on-balance-volume and an 'almost' breakout of similar resistance in the MACD gives the bulls cause for optimism. Slow stochastics are only barely bullish. The third pick, BRLC, is the most vulnerable of the three picks and real attention should be paid to support at $3.61. Technically the stock is not in bad shape with new highs in on-balance-volume and new near term highs in the MACD trigger line. Slow stochastics are in good shape although these have retreated from their highs. There was an after hours fill on Friday for $3.55 but I couldn't see any news which could account for this and it was only a 400 share lot. For my review purposes I am using Friday's closing price as a a mark but GTC buy orders down to $3.61 would still leave a 16% risk - so an alternative stop at $3.34 would leave one more vulnerable to whipsaw but would provide a better risk outlay than the one I will be using. Friday's breakout seems to have come in the absence of company specific news.

Back to top

Back to top

Back to top

"IBD" refers to Investors Business Daily

Disclaimer

The information found on the Fallond Stock Picks Inc. website (www.fallondpicks.com) has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. Accordingly, investors should not act on any information in this site without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. However, such information has not been verified by Fallond Stock Picks Inc. or any of its employees, Fallond Stock Picks Inc. makes no representations or warranties or takes any responsibility as to the accuracy of completeness of any recommendation or information contained herein. Fallond Stock Picks Inc. accepts no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct or consequential loss of any kind arising out of the use of the information provided on this website, or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Fallond Stock Picks Inc., or their respective affiliates or their officers, directors, analysts, or employees may have positions in securities referred to herein. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities mentioned herein. This document does not purport to be a complete description of the securities market or developments to which reference is made. There may be instances when fundamental, technical, and quantitative opinions may not be in concert. There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. Fallond Stock Picks Inc. and their affiliates make no representation that the companies which issue securities which are the subject of their research reports are subject to, or in compliance with certain informational reporting requirements imposed by the Securities Exchange act of 1934. Sales of securities or services covered in any report or on the web site may be made in only those jurisdictions where such securities or services and Fallond Stock Picks Inc. are qualified for solicitation. Fallond Stock Picks Inc. does not warrant, represent or endorse the accuracy or reliability of any of the information, content, advertisements, or Third Party Sites and Content (as defined below) (collectively, the "Materials") contained on, distributed through, or linked, downloaded or accessed from Fallondpicks.com, nor the quality of any products, information, or other materials displayed, purchased, or obtained by you as a result of an advertisement or any other information or offer on or in connection with Fallond Stock Picks Inc. You acknowledge that any use of or reliance upon any Materials shall be at your sole risk. Fallond Stock Picks Inc. reserves the right, in its sole discretion and without any obligation, to make modifications to any portion of the Fallondpicks.com web site or publications at any time. You acknowledge and agree that you bear responsibility for your own investment research and investment decisions, and that Fallond Stock Picks Inc. shall not be held liable by you or any others for any decision made or action taken by you or others based upon reliance on or use of information or materials obtained or accessed through use of Fallondpicks.com. Prior to any transaction in securities, you should consult with a qualified professional securities or financial advisor.

Copyright 2004-2005 Fallondpicks.com

Support Emerging Entrepreneurs

$25 of every Annual Subscription is routed through Kiva.org

In exchange, you get the stocks featured at Fallondpicks.com delivered straight to your email address

Click here for sample newsletter.

Sign up for a payment plan to Subscribe

User id: member email address password: "gold"

Allow 24 hours to set up web site access

Subscription rates

12 months for $119 (save 33%)

6 months for $79.99 (save11%)

$14.99 monthly by credit card