NEW BULLISH Plays

Allot Communications - ALLT - close: 27.01 change: +0.86

Stop Loss: 25.99
Target(s): 29.90
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
According to their website this Israeli technology company is a "leading provider of intelligent IP service optimization solutions for fixed and mobile broadband operators and large enterprises." Investors seem to be taking a bullish view on the stock with shares closing at all-time, record highs today.

I'd like to see a little more follow through since the $27.00 level is apparently resistance from early May. We'll use a trigger at $27.25 to launch small bullish positions with a stop loss at $25.99. Our upside target is $29.90.

Trigger @ 27.25

Suggested Position: buy ALLT stock @ (trigger)

- or -

buy the Jul 30 call (ALLT1221G30) current ask $0.95

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 584 thousand
Listed on June 12, 2011


Home Depot, Inc. - HD - close: 52.24 change: +0.89

Stop Loss: 51.35
Target(s): 58.50
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this home improvement giant are challenging resistance at multi-year highs. The lack of follow through on yesterday's bearish reversal is encouraging but I would not buy it yet. The $53.00 level seems to be the challenge.

I am suggesting a trigger to open bullish positions at $53.05 with a stop loss at $51.35 (just under today's low). Our multi-week target is $58.50.
FYI: The Point & Figure chart for HD is bullish with a long-term $95 target.

Trigger @ 53.05

Suggested Position: buy HD stock @ (trigger)

- or -

buy the Aug $55 call (HD1218H55) current ask $1.03

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 08/14/12 (unconfirmed)
Average Daily Volume = 14.3 million
Listed on June 12, 2011