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Vital Images - VTAL - close: 18.93 change: +0.92 stop: 17.49

Company Description:
Vital Images, Inc., headquartered in Minneapolis, is a leading provider of enterprise-wide advanced visualization software solutions for use in disease- screening applications, clinical diagnosis and therapy planning. The company's technology gives radiologists, cardiologists, oncologists and other medical specialists time-saving productivity and communications tools that can be accessed throughout the enterprise and via the Web for easy use in the day-to-day practice of medicine. (source: company press release or website)

Why We Like It:
Technically today's bullish breakout appears to be a new entry point for longs. VTAL has been consolidating in a wedge-like pattern for the last three weeks. Today's gain pushed it through its short-term trendline of lower highs with volume coming in above average on the move. The MACD indicator is nearing a new buy signal and short-term oscillators like the RSI and stochastics are edging higher again. The Point & Figure chart is bullish and points to a $29.00 target. The biggest risks we see to this play are the time frame and the NASDAQ. The time frame is an issue because we do not want to hold over VTAL's August 2nd earnings report. That gives us about two weeks. The NASDAQ is probably the larger problem as the NASDAQ Composite index looks very overbought and extended and nearing what could be tough resistance in the 2190-2200 region. We would only speculate with small positions. It may be prudent to look for a dip tomorrow back toward the $18.50 region but we're not really expecting a dip. We will start the play with a stop loss under support at $17.50. Our target is the $21-22 range.

Picked on July 19 at $18.93
Change since picked: + 0.00
Earnings Date 08/02/05 (confirmed)
Average Daily Volume: 107 thousand
 

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