NOTE: Readers may want to keep an eye on Micron Technology (MU). After a sharp rally in early December the stock has paused to digest gains and consolidate sideways. The $7.00 level has been resistance multiple times in the past. We are watching it for a breakout past $7.00 as a bullish candidate.
NEW BULLISH Plays
Nuance Communications - NUAN - close: 22.90 change: -0.05
Stop Loss: 22.40
Current Gain/Loss: unopened
Entry on December xx at $ xx.xx
Listed on December 19, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below
Why We Like It:
NUAN has been showing relative strength the last few days. Today wasn't that impressive but it did hold on to its prior gains. Currently NUAN is hovering just underneath resistance at $23.00 and its simple 200-dma. A breakout higher could signal the next leg up.
We are suggesting small bullish positions with a trigger to initiate a trade at $23.20. If triggered our target is $25.75. NUAN can be a volatile stock so I am suggesting we keep our position size small to limit our risk.
Trigger @ 23.20
Suggested Position: buy NUAN stock @ (trigger)