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Carpenter Tech - CRS - close: 63.08 chg: +1.16 stop: 59.95

Company Description:
Carpenter Technology, based in Wyomissing, Pa., is leading manufacturer and distributor of specialty alloys and engineered products. (source: company press release)

Why We Like It:
CRS has a somewhat steady pattern of trending higher over the past several months. A quick glance at the daily chart does show a few pull backs but the overall trend looks like one of a bullish, rising channel. Several days ago CRS put in another short-term bottom and the stock is rebounding higher. Two days ago the company announced that it was raising prices on some of its products. Technical oscillators are bullish and its MACD just produced a fresh buy signal yesterday. We like the close over the 50-dma today and the bullish P&F chart that points to a $76 target. However, we see some resistance at the $64.00 level. Our plan is to use a TRIGGER at $64.05 to open the play. More aggressive traders can use an alternative entry point on a pull back toward the $60.00 mark although we'd prefer to buy a bounce from $60.00 if CRS did pull back. Our target is the $70.00 region. What makes this play somewhat more risky is the time frame. We do not want to hold over the April 25th earnings report and even that date has not yet been confirmed.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 60.00 CRS-EL OI=489 current ask $5.50
BUY CALL MAY 65.00 CRS-EM OI= 77 current ask $2.75

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/05 (unconfirmed)
Average Daily Volume = 334 thousand
 

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