Aug 27, 2010 10:04 AM PDT
We mentioned Alanco Technologies Inc. (ALAN) had started a breakout move a few days ago, back on the 2nd when the sock was trading at $0.51. Now it's at $0.57. Better still, the breakout looks like a healthy, sustainable one.
As we said then, the key for Alanco Technologies was getting above - and staying above - that ceiling. Well, it's done that....at a perfect pace. The only concern was that volume has been mild from ALAN on the way past $0.51. But, today's trade is pretty heavy; it looks like the market's starting to file in at a faster pace.
The next checkpoint for Alanco Technologies at $0.81, though that's not necessarily a target price - just a level that's been turbulent before. ALAN was trading in the $1.50 area a year ago, and that may ultimately be where it's headed again now that the breakout has a solid footing.
The good news for American Scientific Resources, Inc. (ASFX) owners is that the worst may be over. The bad news is, it's been a rough ride if you rode it out so far.We really want to focus on the Fibonacci retracement lines for the American Scientific Resources chart. Why? Because they've been such a big deal for ASFX so far. Check out what happened at the 38.2% retracement line on Tuesday and Wednesday.... perfect support. That first Fib line broke down today, and the stock hasn't looked back.
The next floor is the 61.8% retracement line at $0.031, and ASFX is trading at $0.036 right now. The lack of strong selling volume says that's where the misery should end for American Scientific Resources shares. If that floor breaks as well though, yikes.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary and
Trading Alerts on SRZ, ASFX, ALAN, and LOCM.
----------------------------------------------------------------------
Sunrise Senior Living Inc. (SRZ) was first discussed back on September 15th, when we first posed it as a potential breakout stock. We're bringing it up again today for the same reason, but with some good news.
In short, Sunrise Senior Living has indeed broken past the resistance at $3.05. In fact, today's high of $3.26 from SRZ is a new multi-year high. The sweetest part about this chart though is not the break above a ceiling - it's that it made the move at a very slow, sustainable pace. (The pace is picking up though.)
To really show you the scope of what's at stake here, we're plotting a weekly chart of Sunrise Senior Living shares. The stock was above $20.00 just a little over a year ago, so the recovery opportunity is massive. Needless to say, we're calling SRZ a buy.
Finally, don't be surprised that Local.com Corp. (LOCM) is struggling with the $6.00-ish ceiling now. Despite a lot of momentum (perhaps a little too much), the first of a major Fibonacci retracement level is holding the stock down.
Now to be clear, this isn't to say Local.com shares are headed south. It may simply be a case where LOCM will have to press up against the ceiling for a while, build a base, and then pop through it. We just don't know. There is a flipside though...a stall that takes a little too long will eventually deflate investor enthusiasm, and send the stock lower.
So, Local.com shares should be on your watchlist, but not necessarily acted on yet. Look for other supporting clues as to the next move from LCOM.
If you'd like to know of any changes in our opinion of LOCM, SRZ, ASFX, and ALAN (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
