NEW BULLISH Plays
Keynote Systems Inc. - KEYN - close: 20.35 change: +0.08
Stop Loss: 18.85
Target(s): 22.25, 24.75
Current Gain/Loss: +0.0%
Time Frame: less than two weeks
New Positions: Yes, see below
Why We Like It:
Right now "cloud computing" is a hot button for investors and KEYN has definitely been showing some relative strength in April. The stock broke out from a two-month consolidation pattern and is holding above round-number resistance near $20.00. I do consider this a very aggressive, speculative trade so keep positions small to limit risk.
I am suggesting small bullish positions now. More conservative traders could put their stop near $19.65, which is just under yesterday's low (19.67) but the newsletter is suggesting a stop loss at $18.85 to give shares of KEYN room to maneuver. Our upside targets are $22.25 and $24.75 but this is a very speculative play and we will not hold over the earnings announcement on April 26th.
FYI: The Point & Figure chart for KEYN is bullish with a $41 target.
Open Small Bullish Positions Now
Suggested Position: buy KEYN stock @ current levels
- or -
buy the May $20 calls (KEYN1121E20) current ask $1.70
Entry on April 14 at $xx.xx
Earnings Date 04/26/11 (confirmed)
Average Daily Volume: 193 thousand
Listed on April 13th, 2011