KLA-Tencor - KLAC - close: 45.01 change: +0.05

Stop Loss: 43.95
Target(s): 49.85
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
KLAC is part of the semiconductor industry. The stock is trying to breakout past resistance near its 50-dma after just spending more than two weeks consolidation under resistance near $45.00. If KLAC can breakout past this technical resistance shares could make a run at its March highs. I do see potential resistance at $48.00 but we'll aim for the $49.85 mark.

The high last week was $46.18. I am suggesting we use a trigger to launch bullish positions at $46.25. We'll use a stop loss at $43.95.

Trigger @ 46.25

Suggested Position: buy KLAC stock @ 46.25

- or -

buy the June $47.00 calls (KLAC1118F47) current ask $1.65

Annotated chart:

Entry on May x at $xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 653 thousand
Listed on May 9th, 2011