Monday, August 07, 2006


A second down day for the market has slowed up the Trade Ideas scan to a higher degree; today's eight stocks covered a time span of 21 minutes. Picks like PTY, MGU, MUI and KYN are continuing prior uptrends. MUI had a recent, bullish cross of its 20-day/50-day MAs.

Extra Space Storage (EXR) has shaped a solid handle with resistance at $16.50 and support at $15.50. Stops can go on a loss of the latter price. Larger resistance can be found at $17.00. A move to the latter price would trigger a double top breakout on the point-n-figure chart and send it well on its way to its current price objective of $25.00.

Those preferring to buy the pullback. Hittite Microwave corp. (HITT) has formed a small hammer following 4 days of declines. The 50-day MA has been ragged support in the past, but buying a break of $36.60 with a stop on a loss of $35.50 should be enough to see a test of $41.00. Further resistance kicks in at $42-45. This stock has exhibited excellent accumulation throughout 2005 and 2006, with new highs on increasing volume. The point-n-figure chart target of $58 is well within its range.

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