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Regal Beloite - RBC - close: 44.61 change: +0.51 stop: 42.49

Company Description:
REGAL-BELOIT CORPORATION is a leading manufacturer of electrical and mechanical motion control and power generation products serving markets throughout the world. (source: company press release or website)

Why We Like It:
We are reluctantly bullish on stocks. Normally September is a very weak month for stocks but this year is thus far breaking that historical pattern. Speaking of patterns shares of RBC have been consolidating sideways over the last few months and have produced what appears to be an inverse (bullish) head-and-shoulders pattern. The neckline or resistance is near the $45.00 level. The stock's recent strength has produced a new MACD buy signal and turned the short-term technical indicators bullish. The P&F chart is also bullish with a $55 target. Weekly chart technicals are improving. We are suggesting that readers wait for a breakout over resistance at $45.00 before going long. Our suggested entry point will be at $45.11. If triggered our target is the $49.00-50.00 range. We do not want to hold over the late October earnings report.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 291 thousand
 

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