NEW BULLISH Plays

PACCAR Inc. - PCAR - close: 52.83 change: +0.04

Stop Loss: 48.95
Target(s): 54.75, 57.00
Current Gain/Loss: unopened
Time Frame: two or three weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The recent bullish breakout past $50.00, its 50-dma and 200-dma certainly looks like a change in direction for PCAR. Yet the rally looks a little tired. We might be able to hop on board the new up trend if shares dip. This is short-term two or three week trade since we don't know yet when PCAR reports earnings but it will probably be near the April 20th time frame.

I am suggesting we open bullish positions on a dip at $51.00 with a stop loss at $48.95. Our first target is $54.75 but we'll plan to exit before the April earnings announcement. FYI: The Point & Figure chart for PCAR is bullish with a $69 target.

Trigger @ 51.00

Suggested Position: buy PCAR stock @ 51.00

- or -

Buy the May $49.70 call (PCAR1121E49.70)

Annotated chart:

Entry on April x at $xx.xx
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on April 6th, 2011