We believe shares of EGT are poised to break higher based on daily patterns. Stock completed standard 60 day pull back within an over all uptrend; completed at the 200 day moving average. Stock then went 15 days up and 15 days down to complete the next leg higher, this time holding at the 50 day. The bullish buys continue to pay up in price. Look for a run at the zero number .30 to finally break out towards the .40-50c level, giving us a double your money trade.
DRL-Doral Financial Corp is trades in the Mortgage banking sector. Companies shares use to trade north of $55 per share, now going for just over $3. As noted on weekly chart, shares are in clear turn around pattern up-trend channel. Stock has solid support at the 50 day on weekly, and has formed a bullish engulfing pattern on daily as the bulls have become more bullish. We believe the $4.40 area will still pose some resistance in the short run, but 3-6 months the stock is a double your money pick. The banking/mortgage sector trades at 3.26xs sales, DRL less then 2xs.
