Tuesday, September 26, 2006

Trade Ideas: ATK

Large caps finally broke to new 52-week highs, giving the bulls something to cheer after a dogged summer of declines. The joy didn't spread much beyond these indices as the Trade Ideas scan took a disappointly long 10 minutes to generate 8 different picks.

Top of the pile was Alliant Techsystems (ATK). It mananged 47 appearances on the Trade Ideas scan and was well clear of second placed Ryder Systems (R) on 31 appearances.

Alliant Techsystems enjoyed solid gains throughout the day, continuing a strong advance from early 2004 when it traded at lows of $47. The point-n-figure chart target of $105 looks well within its range, part of a September 13th Bullish Triangle Breakout. Tuesday's gains were enough to clear $82 resistance, with larger resistance lurking at $84.74. The projected target from the 5-month base is around $94.

Alliant Techsystems, Inc. engages in the supply of aerospace and defense products to the U.S. government, U.S. allies, and contractors in the United States. It also supplies ammunition to federal and local law enforcement agencies, and commercial markets. The company operates in five segments: Ammunition, ATK Thiokol, Precision Systems, Advanced Propulsion and Space Systems, and ATK Mission Research.

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