CANSLIM.net Company Profile: Interactive Intelligence, Inc. provides software applications for contact centers and voice over Internet protocol (VoIP) applications to enterprises. The company was founded in 1994 and is headquartered in Indianapolis, Indiana. This high-ranked leader has stellar ranks based on strong annual earnings growth, and the fact that the company has grown its earnings and sales revenues by above the +25% guideline in the past three quarters. The company hails from the Computer Software Enterprise group which is presently ranked 9th on the 197 Industry Groups list, which places it in the much coveted top quartile of industry groups, satisfying the L criteria. The number of top-rated funds with an ownership interest has grown from 28 funds in March ‘07 to 39 funds as of September '07, a sign of increasing institutional interest (the I criteria).

What to Look For and What to Look Out For: Look for the stock to trigger a new technical buy signal by breaking out from its base-on-base type chart pattern in the coming days and weeks. Remember that buyable breakouts muct clear their pivot point with gains backed by at least +50% above average volume.  Much of its success will depend 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 confirmed rally fails. Deterioration under its 50 DMA line and prior chart highs in the $23 area would raise concerns and trigger technical sell signals. 

Technical Analysis: The stock cleared resistance in the $23 area with a high volume breakout on 10/31/07, and then it held up above its prior chart highs during the subsequent pullback.  It also stayed well above its 50 DMA line, an important support level.  Note that its Relative Strength line has helped to confirm its advance into new high territory, a very good reassurance.