NEW DIRECTIONAL CALL PLAYS
Dover Corp. - DOV - close: 58.92 change: +0.18
Stop Loss: 56.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
Shares of this industrial stock are on the verge of a significant bullish breakout. The stock has spent months under resistance in the $59-60 zone. The August-December time frame almost looks like an inverse head-and-shoulders bottoming pattern. DOV tested technical resistance at its 200-dma today but couldn't breakout given the sideways market.
I am suggesting a trigger to buy calls at $59.55 with a stop loss at $56.75. More conservative traders may want to wait for DOV to rally past the $60.00 level instead since $60.00 might be considered round-number resistance.
If we are triggered at $59.55 our target is $64.50.
FYI: The Point & Figure chart for DOV is bullish with a $75 target.
Trigger @ 59.55
- Suggested Positions -
buy the Jan $60 call (DOV1221A60) ask $1.05
Entry on December xx at $ xx.xx
Earnings Date 01/27/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on December 27, 2011