What to Look For and What to Look Out For: Look for ARD to make further progress as this stock has just broken out to a new all time high and out of a fresh 5-month base. It was highlighted in yellow in the 4/21/2008 CANSLIM.net Mid-Day Breakouts Report (read here). Prudent investors know to avoid buying a stock beyond its pivot point by more than +5%, so the "maximum buy" price in this case is $47.72. A close back under its $45.45 pivot point would prompt concern.  If the stock rolls over and closes below its prior high close ($44.70 on 12/26/07) then the technical breakout will be negated and odds would then favor it spending more time trading in its recent base. Its small supply of outstanding shares (the S criteria) could contribute to greater volatility if the institutional crowd rushes in or out.  Always limit losses per the 7-8% sell rule, and never hold a stock if it falls more than that much from your purchase price.

Technical Analysis: The stock vaulted out of a five month base on Monday, April 21st, 2008 and triggered a technical buy signal when it surged above its $45.45 pivot point on over twice its normal daily volume total.  Volume is a critical component of institutional sponsorship, and the fact that volume swelled as ARD charged to new all-time highs (the N criteria) showed a strong vote of confidence from the institutional crowd (the I criteria).