Cognizant Technology Solutions - CTSH - close: 77.79 change: +1.88

Stop Loss: 74.75
Target(s): 82.25, 84.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Shares of CTSH, a business software and services company, have been consolidating sideways for over two months. Shares were showing relative strength today and look poised to breakout over resistance near $78.00. I am suggesting we use a trigger to buy calls at $78.25. If triggered we'll use a stop loss at $74.75. Our upside targets will be $82.25 and $84.75.

FYI: The Point & Figure chart for CTSH is bullish with a $105 target. Plus, a breakout past $78 would produce a new quadruple top breakout buy signal.

Trigger @ 78.25

- Suggested Positions -

Buy the April $80 calls (CTSH1116D80) current ask $1.70

Annotated Chart:

Entry on March xxth at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on March 8th, 2010