Option Investor
New Plays

Four new bullish candidates

HAVING TROUBLE PRINTING?
Printer friendly version


NEW BULLISH Plays

Harsco - HSC - close: 26.72 change: +1.22 stop: 24.85

Why We Like It:
HSC is part of the iron and steel industry. The stock has been showing relative strength and out performed the broader market last week. Shares also broke out past resistance in the $25.00-25.75 region. We are suggesting long positions now. More patient traders may want to wait for a dip back toward $25.75 or even towards $25.00. We have two targets. Be sure to take some money off the table at our first target, which is $29.90. Our second target is $32.00. The Point & Figure chart looks very bullish with a $38.00 target.

Annotated chart:
HSC

Picked on December 20 at $26.72 
Change since picked:     + 0.00   			
Earnings Date          01/29/09 (unconfirmed)    
Average Daily Volume:       826 thousand    


QUALCOMM - QCOM - close: 35.03 change: +0.91 stop: 33.75

Why We Like It:
December has been a very bullish month for QCOM. The stock has recovered from its lows under $30.00 and QCOM has now broken through multiple levels of resistance. The new trend appears to be up. Friday's bounce from the 10-dma above $34.00 looks like a new entry point to buy the stock.

We are suggesting long positions now. We'll initiate the play with a stop loss at 33.75 just under Thursday's low. Our first target is $37.45. Our second target is $39.75. Expect some resistance at $40.00. The Point & Figure chart is bullish with a $49 target.

Annotated chart:
QCOM

Picked on December 20 at $35.03 
Change since picked:     + 0.00   			
Earnings Date          01/28/09 (unconfirmed)    
Average Daily Volume:        22 million     


Student Loan Corp. - STU - close: 40.74 change: +4.24 stop: 34.95

Why We Like It:
STU is a high-risk, high-reward play. The stock can be extremely volatile and shares do not have a lot of volume, which makes it even more prone to wild intraday swings. The stock's rally on Friday is a bullish breakout over resistance at the 50-dma and the $40.00 mark. You could argue that shares still have resistance at $41.00 but we're going to risk it and suggest new positions right here or on a dip back toward $38.00. We're going to use a very wide (a.k.a. risky) stop loss at $34.95 just under Friday's low. More conservative traders who choose to buy this stock may want to use a stop closer to $38.00 instead. We're setting multiple targets.

Our first target is $44.85. Our second target is $49.50. Our third target is $54.50. The Point & Figure chart just produced a brand new triple-top breakout buy signal with a $57 target.

Annotated chart:
STU

Picked on December 20 at $40.74 
Change since picked:     + 0.00   			
Earnings Date          01/12/09 (unconfirmed)    
Average Daily Volume:        44 thousand    


Total System Services - TSS - close: 14.10 change: +0.51 stop: 13.49

Why We Like It:
The consolidation in TSS has been coiling for three weeks. A breakout should be imminent. Given the bullish trend of higher lows the breakout should be higher. Currently the stock has resistance in the $14.25-14.35 zone. We're suggesting a trigger to buy the stock at $14.40. More conservative traders may want to use a trigger above $14.50 instead.

We're listing two targets. Our first target is $15.95. Our second target is $17.45.

Annotated chart:
TSS

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:       1.1 million   


Premier Investor New Play Archives