Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Some of them need to breakout past resistance.

(bullish candidates) CRNT, PHM, SYMC, TEX, CASY, ARO, SIRI, TICC


NEW BULLISH Plays

Digital River - DRIV - close: 18.28 change: +0.26

Stop Loss: 17.45
Target(s): 21.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The gap higher in shares of DRIV on February 3rd was a reaction to the company's better than expected earnings numbers. Investors ignored a warning for the first quarter and bought the stock anyway. Now shares are slowly consolidating higher and look poised to breakout past the $18.50 area.

DRIV can definitely see some volatility so we want to keep our position size small to limit our risk. I am suggesting bullish positions if DRIV can trade at $18.50 or higher. There potential price resistance at $20.00. There is potential technical resistance at the 150-dma and exponential 200-dma (see chart below).

Trigger @ $18.50 (small positions)

Suggested Position: buy DRIV stock @ (trigger)

- or -

buy the Mar $18 call (DRIV1217c18) current ask $1.00

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 727 thousand
Listed on February 13, 2011