Strong Signal for Chemical Materials Company
03/25/2010 12:01 am EST
Solutia Inc. (SOA) - This company manufactures and markets chemical and engineered materials used in consumer and industrial applications.
SOA has been in a bull market since April 2009, when it broke from a sharp "V" bottom at under $2.
From September until February, the stock consolidated within a cup-and-handle before finally breaking out at $14.
Monday, SOA issued a strong Collins-Bollinger Reversal (CBR) buy signal, as well as a favorable signal from the stochastic.
The trading objective for the breakout is $18, but longer term, SOA could go much higher.
Ford Equity Research has a "strong buy" rating on the stock.
By Sam Collins of OptionsZone.com