Wednesday, July 14, 2010

Stock to Watch: Rubicon Technology (RBCN)

Bulls will be looking to press yesterday's advantage off the back of strong Intel earnings so this optimism should spread to other technology stocks. I had to dig through my past breakout scan results to come up with a stock for today. Today's candidate, Rubicon Technology (RBCN) - a specialized semiconductor company, featured on June 14th and could see some love over the coming days.

Unlike many of the breakout stocks which have featured this past month it was one of the few not to reverse the qualifying (June 14th) breakout. The stock is engaged in a strong up trend dating back to market lows of March 2009, less the negative consequences of the past 3 months. It is nicely poised to break $34 resistance; a tight stop could go on a loss of $32, but if you wanted to give the trade some room place the escape hatch on a loss of $30.

Zignals Chart Image

As for upside potential, the 1-year Analysts' estimate is $35.83. Five analysts have 'buy' rating, one an 'outperform' and three recommend a 'hold'. Oppenheimer made two calls; one in May 2010 when the stock was at $27.11 for a target of $30; a second in June for a raised target of $34 when the stock was trading at $25.64. The measured move target based on the rally from the April-June consolidation is around $43.

Set your Zignals Free Alerts for a Price Cross Below either $30 or $32 and a Price Cross Above $34 (US alerts are real-time) to notify you when the breakout happens. If purchased, use another alert for a Price Cross Above $42 as a Target.

Could be an interesting day?

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