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CANSLIM.net Profile:
FLIR systems, Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally. It operates in three divisions: Thermography, Commercial Vision Systems, and Government Systems. FLIR Systems offers its products through direct sales personnel, and a network of distributors and representatives. The company was founded in 1978 and is headquartered in Wilsonville, Oregon. FLIR hails from the Elec-Military Systems group which is presently ranked 26th on the 197 Industry Groups list easily placing it in the top quartile needed to satisfy the L criteria. The number of top-rated funds with an ownership interest has grown from XXX funds in June '07 to XXX funds as of March '08, a sign of increasing institutional interest (the I criteria).

What to Look For and What to Look Out For: Look for the stock to find support above its pivot point ($35.64) and then continue marching higher. This would be considered "healthy" action which would reaffirm its recent technical buy signal. Remember that buyable breakouts must clear their pivot point with gains backed by at least +50% above average volume during a confirmed rally. Therefore, much of a stock's success depends on the broader market's ability to sustain a meaningful rally, otherwise 3 out of 4 stocks are likely to struggle in the event that the latest rally-attempt fails. Deterioration under $35 will technically negate the current breakout and raise concerns. 

Technical Analysis: The stock gapped above its pivot point on very heavy volume. FLIR was featured in yellow in the May 22, 2008 CANSLIM.net Mid-Day BreakOuts Report (read here). The stock broke out of a long multi month base on heavy volume which has bullish ramifications. At the time, the stock cleared the $35-36 area which had been a stubborn resistance area. Now the stock has risen free of all resistance due to overhead supply, with healthy price and volume action that is a strong sign of institutional buying demand (satisfying the I criteria). However, the stock's latest technical buy signal may not deserve as much notice until a confirmed rally from the major averages is produced by a sound follow-through day. Until then, patience is paramount.