Thursday, July 08, 2010

Stock Breakout: Micrus Corp (MEND)

It has been a tough couple of weeks for stocks but there has been one stock knocking on the door. Micrus Corp (MEND) first came to my attention on July 2nd. In my tweet I had initially noted the bearish black candlestick but thought the gap looked like a base breakout.

Fast forward to yesterday and the stock again appeared in my July 7th breakout scan and has done very well to negate not just the bearish implications of the black candlestick but hold the breakout gap too. I have made a bullish Trading Idea for a push to $27.75 with a stop at $20.69 (If you register for free with Zignals then click [Follow] on the Trading Ideas tab you will get my latest trading ideas sent direct to your email address).

Volume was also impressive. The initial trigger for the breakout was its addition to the S&P 600. Certainly, with open air above and a fundamental cause to drive it there is a reasonable chance it will make it to its initial target of $27.75 - the measured move from the base.

Zignals Chart Image

The 1-year consensus call by analysts is for $22.94 with 3 buy, 5 outperform and 2 hold recommendations.

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