Sunday, February 18, 2007

The 20-Day Play

The 20-Day Play will be a regular feature of this blog. In order for a stock to make The 20-Day Play, it must trade above its 20 day simple moving average for at least 20 days, and then bounce on or near the 20 day simple moving average. (Please consider the words "The 20-Day Play" to be trademarked, 2007.)

First up is LDSH. This chart features a strong run-up and a pull back to the 20-day. Prior resistance highs from May and June of 2006 are meeting the 20 day and have become support.

Ladish Co., Inc. is a leading producer of highly engineered, technically advanced components for the jet engine, aerospace and general industrial markets.

The last earnings report for LDSH shows that the company almost doubled YoY diluted EPS.

Up next is KNXA.
KNXA's chart features a strong run-up and a pullback to the 20-day. The stock bounced firmly from support generated from the pivot-point at 35 and regained its footing to close above the moving average.

KNXA last reported earnings on Valentine's Day. It was a sweet report, although they guided FY07 Q1 on the weak side.

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