Editor's Note:

In addition to our new candidates below these two stocks might offer some opportunity.

CTL - This stock failed twice at resistance near $41.50 last week. A breakout past $41.50 or the $42.00 level (or for conservative traders, the 100-dma a little bit higher) could be used as a bullish entry point.

TGT - We tried playing TGT recently but the stock never hit our trigger to open positions. Now shares are flirting with a breakout above its 50-dma and above resistance near $51.00. Readers may want to use a trigger at $51.25 to open short-term bullish positions. I would target a move toward the 200-dma or the $55 area. Traders should be aware that earnings are coming up (looks like May 18th) and I would not hold over the report.

- James


NEW BULLISH Plays

Ingersoll-Rand - IR - close: 50.08 change: +0.83

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of IR held up pretty well last week. While the rest of the market was falling IR was consolidating sideways. Shares did spike lower on Wednesday and Thursday but traders bought the dip twice near $49.00. The stock has spent two weeks consolidating its gains from mid April. I am suggesting bullish positions now. Nimble traders could try and jump in on another dip near the $49 area or wait for a rally past $51.25 or past $52.00 as their entry point. We'll use a stop loss at $48.75. Our target is $54.75. FYI: The Point & Figure chart for IR is bullish with a $79 target.

Suggested Position: buy IR stock @ current levels

- or -

Buy the June $50 call (IR1118F50) current ask $1.80

Annotated chart:

Entry on May 9 at $xx.xx
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on May 7th, 2011


DENTSPLY Intl. - XRAY - close: 38.32 change: +0.27

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
XRAY is another stock that spent last week consolidating sideways instead of correcting lower. Shares came close to breaking out to new 52-week highs on Friday. More aggressive traders may want to open bullish positions now. I am suggesting a trigger to launch positions at $39.00. If triggered our profit targets are $42.00 and $44.50. FYI: The Point & Figure chart for XRAY is bullish with a $59 target.

NOTE: Readers may want to avoid the options. XRAY doesn't have a lot of option volume and the spreads are wide, which puts traders at a disadvantage.

Trigger @ $39.00

Suggested Position: buy XRAY stock @ 39.00

- or -

Buy the June $40 call (XRAY1118F40) current ask $0.50

Annotated chart:

Entry on May x at $xx.xx
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 904 thousand
Listed on May 7th, 2011