CGP - Coastal Corp. $83.50 +1.00 (+1.31)

Oil conglomerate Coastal Corp. achieved a new 52-week high today, as it continued its rise after a recent breakout. On November 21, the company's stock broke through resistance on 60 percent greater-than-average volume and has sustained this new level with repeated strong-volume trading days. Moreover, Coastal became a once it hit $75.00. Earnings are scheduled for January and that may be the prefect time to announce another split. The stock has split twice before, the most recent being a 2:1 split in 1998. In October, the company reported a record, posting quarterly earnings-per-share (EPS) $0.20 higher than the same year-ago period. Looking at the chart, we now note that resistance for the stock will likely come at Tuesday's intra-day high of $84.19. Support now exists at the 5-dma of $82.39 followed by the 10-dma of $79.31. If you are considering opening a new play on Coastal, look for confirmation in the Dow Jones Industrial Average (INDU) as well the AMEX Oil & Gas Index (XOI). Look for resistance to be conquered on good volume, over 1 million shares, or a quick bounce off a support level on strong volume. We will place a stop loss down at $78.00 for protection. Please take a moment to visit our IN PLAY section for all of our play stops.

Picked on November 28th @ $83.50 Change since picked 0.00

MRK - Merck & Company $92.63 +1.00 (+3.19)

Pharmaceutical giant Merck & Co. tapped into a new 52-week high Tuesday thanks to a major announcement. On Tuesday, the company announced the formation of a $100 million dollar e-health venture fund. The fund will invest in information-technology companies in order to speed up communications between doctors, drug companies and patients, according to an article published in the Wall Street Journal. This news event, the new 52-week high and the possibility of a forth-coming split were enough to peak our interest. We clearly see MRK as a at this level and hope for an announcement to come in the near future, possibly with its next earnings in January. The company has a stellar history of splits, with the most recent being in February 1999 just after earnings. Additionally, it should be noted that the company has 2.3 billion shares outstanding and 5.4 billion authorized, so there are plenty of shares for a 2:1 split. Currently, the stock has resistance at Tuesday's high of $92.94 and the psychologically-significant century mark. Support can be measured at $92.00 and the 20-dma of $90.19. New plays might be considered if the stock conquers resistance on good volume supported by upward momentum on the Dow Jones Industrial Average (INDU) and the AMEX Pharmaceutical Index (DGX). We will place our stop loss below support at $87.00. All of our stops are posted daily at our IN PLAY section.

Picked on November 28th @ $92.63 Change since picked 0.00