Editor's Note:

These two technology stocks are at the top of their trading range and look poised to breakout.

-James


NEW BULLISH Plays

Adobe Systems - ADBE - close: 25.84 change: +0.08

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADBE has been consolidating sideways in the $22.75-26.00 range for several weeks. Now shares are testing resistance and poised for potential breakout higher. If that occurs we could see ADBE make a run towards $30 and its 200-dma.

The recent highs were $26.30. I am suggesting a trigger to open bullish positions at $26.35. We'll use a stop loss at $24.75. We do want to keep an eye on possible resistance at the 100-dma and the exponential 200-dma. We'll set our target at $29.50.

Trigger @ 26.35

Suggested Position: buy ADBE @ 26.36

- or -

buy the NOV $27 call (ADBE1119K27) current ask $0.78

Annotated chart:

Entry on October xx at $ xx.xx
Earnings Date 12/15/11 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on October 11, 2011


Autodesk, Inc. - ADSK - close: 30.01 change: +0.74

Stop Loss: 28.25
Target(s): 34.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADSK is arguably overbought. Shares have seen a huge bounce from under $25.00 to $30.00 in six days. Shorts have got to be nervous here. The $30 level has been resistance for weeks. If the stock breaks out it could see another big surge higher.

I am suggesting we use a trigger to open bullish positions at $30.35 with a stop loss at $28.25. Our target is $34.50. I would keep our position size small since ADSK is short-term overbought here.

Trigger @ $30.35

Suggested Position: buy ADSK stock @ 30.35

- or -

buy the NOV $32 call (ADSK1119K32) current ask $1.27

Annotated chart:

Entry on October xx at $ xx.xx
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on October 11, 2011