Friday, July 07, 2006

Trade Ideas: SXT

Quiet action across the board as traders took a breather from yesterday's selling. Still plenty of support to look forward too (with the possible exception of the semiconductor index and the NASDAQ 100) across markets. Trade Ideas scan was again busy. One of the stocks to crop up into the close was Sensient Tech, SXT.

The stock is trading inside a solid $1 wide channel after posting strong April gains. Internal channel volume favors buying, supported by a developing MACD 'buy' trigger. Look to add on break of $20.93. Stops can go on a loss of $19.85. The point-n-figure chart target of $29.50 looks reasonable - part of an April 21st double top breakout. Yield of 2.90% adds to the bullish mix.

Sensient Technologies Corporation engages in the manufactures and marketing of colors, flavors, and fragrances worldwide. Its products include flavors, flavor enhancers, and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food colors; cosmetic and pharmaceutical additives; technical colors, inkjet colors and aftermarket inks, and specialty dyes and pigments; and chemicals for laser printing and flat screen displays.

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