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Titanium Metals - TIE - cls: 35.24 change: +1.19 stop: 32.75

Company Description:
TIMET, headquartered in Dallas, Texas, is a leading worldwide producer of titanium metal products. (source: company press release or website)

Why We Like It:
TIE popped up on our radar screens back in late January and early February with a bullish breakout over its 200-dma on strong volume. Yet we did not add the stock as a play because shares appeared to have significant resistance in the $33.80-34.00 region (see the October and December peaks) in addition to round-number resistance near $35.00. Plus, the company was due to report earnings on February 13th. The last couple of weeks have been bullish for TIE and earnings were better than expected with the company beating estimates by 8 cents. It might seem like we're late to the party here but traders have been buying the dips near its rising 10-dma and shares just tested the 10-dma yesterday. Furthermore the metal stocks have been strong and with the major market averages hitting new highs TIE could easily see more momentum behind this move. The P&F chart shows a triple-top breakout buy signal with a $54 target. We are suggesting long positions now with a $39.50-40.00 target. Patient traders may want to wait and see if TIE tries to fill the gap from Wednesday morning, which would provide an entry point near $34.00-34.25 region.

Picked on February 14 at $35.24
Change since picked: + 0.00
Earnings Date 02/13/07 (confirmed)
Average Daily Volume: 2.4 million
 

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