Sunday, October 31, 2010

Watchlist Update: EBIX @ 24.65 after breakout/pullback

101029 WATCH EBIX  after breakout and pullback to baseline @ 24.65,
use tight STOP below 24.65 , 1st TARGET @25.89, 2nd TARGET - the open sky :)

EBIC is a truly attractive stock2own ( At 24.65 it is priced less than 1/3 its moderate MOS value of  86.17, all growth  rates in the green, low debt. 
The technical indicators on stock2own are also giving green light, so I am  just waiting for a good entry point. The chart has generated a long "cup" formation from Nov. 2009 to Sep. 2010 (as before from Aug. 2008 to July 2009) and broken out successfully on Sep. 27, 2010. In a similar move up, the stock would now have a target around 30.

A breakout move on last Thursday, Okt. 28 on high volume, marked a new high at 26.36. On Friday the stock pulled back to a minor breakout level @ 24.65. If the uptrend is confirmed next week, a tight stop can be set below 24.65 for entering  a trade with a lot of upside potential. 

Note of caution: earnings will be announced on Nov. 9 before market.


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