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Breakouts
for September 10th: The following three stocks are sampled from my member's scans. The first pick, UTVG, is a speculative OTC BB play. The stock cleared a near term resistance level of $2.93, but still has larger resistance at $3.17 to contend with. The weekly chart shows a larger 15-month cup-and-handle pattern which has an additional upside target of $7 over and above my suggested price target. Friday's move followed the announcement of a Board of Directors appointment, continuing a trend of recent gains. On-balance-volume looks to have edged a new 6-month high, which should favor a move above $3.17. A MACD trigger 'buy' is also in play. The point-n-figure chart has a projected target of $5.75, part of a July 17th double top breakout. The second pick, CHTP, is another stock with a healthy weekly chart. The move back to the 40-week MA (c$5.50) looks to be the low point of a 3-month handle, part of a larger 17-month cup-and-handle pattern. Friday's higher volume bounce from $5.75 would look to confirm near term support on improving technical strength - notably the bullish cross for on-balance-volume and the MACD trigger line. The point-n-figure chart has an optimistic target of $13.25 - but also a bearish price pattern to boot. There has been no news since August 14th, so this is a pure price play. The third pick, MIPS, was suckered by a delisting notice from the Nasdaq which trimmed price back some 30% from its highs. The stock is hemmed by its 20-day MA and cautious buyers may wish to wait for a confirmed move (>1%) above this average before joining the fray. There is whole number support at $7.50 to look too, but the recent "Death Cross" may hurt its attempts to get back to $10. Other than a MACD 'buy' trigger technicals are weak - but given the proximity of Friday's closing price to support does give the stock long side merit. As an additional note, the point-n-figure chart shows an August 6th double bottom breakdown with a target of $4.50. High risk.
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