NEW BULLISH Plays
PerkinElmer, Inc - PKI - close 23.27 change +0.39 stop 22.35
PerkinElmer, Inc. is a provider of technology, services and solutions to the diagnostics, research, environmental, safety and security, industrial and laboratory services markets. The Company operates in two business segments: Human Health and Environmental Health.
Target(s): 24.25, 24.85, 25.35
Key Support/Resistance Areas: 25.40, 24.40, 23.30, 22.50
Time Frame: 1 to 2 weeks
Why We Like It:
PKI has been in a solid uptrend since its July lows and is finding resistance at $23.30. The stock is forming a high tight ascending triangle and looks poised to breakout and retest its 52 week highs which are more than +8% higher than current levels. Conservative traders may want to wait for a break above today's high and enter positions at $23.50, while more nimble traders could try to time a pullback into the $23.00 area or its 20-day SMA. Officially, we'll use a trigger of $23.10 (just above today's low) or $23.50 (just above today's high), whichever occurs first. The stock is consolidating above its 20-day SMA (currently $22.81 and rising) and an upward trend line. Our stop is just below the recent swing low which will keep losses under control if the pattern fails.
Suggested Position: Long PKI stock if it trades to $23.10 or $23.50. whichever occurs first.
Entry on October xx
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 1.4 million
Listed on October 11, 2010