NEW BULLISH Plays
CA Technologies - CA - close: 25.24 change: +0.18
Stop Loss: 24.19
Target(s): 26.65, 27.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 7 DAYS
New Positions: Yes, see below
Why We Like It:
Formerly known as CA, Inc. or Computer Associates, the company changed its name in May 2010.
Shares for this large software company just broke out to new two-year highs this past week after a three-week consolidation sideways. The stock looks like it could run toward the next levels of overhead resistance near $26.70 and $28.00. I am suggesting very small bullish positions now with a stop loss at $24.19. More conservative traders may want to consider a stop loss closer to $24.80 instead. We want to plan on exiting bullish positions on January 25th at the closing bell to avoid holding over CA's earnings report that evening. This is a short-term trade! If CA doesn't see follow through higher in the next couple of days we will probably bail out early.
FYI: The Point & Figure chart for CA is bullish with a $39.50 target.
Open Small Positions Now
Suggested Position: CA stock @ current levels
- or -
Buy the 2011 February $25 calls (CA1119B25) current ask $1.00
Entry on January 18 at $xx.xx
Earnings Date 01/25/11 (confirmed)
Average Daily Volume: 2.4 million
Listed on January 15th, 2010