HSIC - Henry Schein Inc. $38.36 +0.36

Sunday's Comment:

Henry Schein, Inc. provides a wide range of healthcare products and services to dental laboratories, physician practices, veterinary clinics, and healthcare institutions in North America, Australia, and Europe. HSIC is coming out of a large cup and handle formation that started back in July of 1999. More recently, the stock took out major resistance at $36 on March 29th after consolidating in the $28-$34 range for three months (the handle). The stock quickly pulled back to the 100-dma only to bounce back to a new 52-week high of $38.40 on Friday. We believe that the stock may be ready to possibly breakout to new highs as we approach the earnings release in early May. Going forward, HSIC has support at the 5-dma, currently at $37, with additional support at $36.36, the 10-dma. There is resistance at Friday's intra-day high of $38.40 and then the 1/22/99 intra-day low of $40. Traders may consider entry points on a bounce off of $37 or a move above $38.40 on volume of at least 250,000 shares by noon. We plan to set stops at $35 to limit potential losses.

Monday's Update:

Since reporting outstanding quarterly results in early March, Henry Schein's stock has shined, rising from $28 a share to today's close of $38.36, which represents a 35 percent gain. More importantly, though, we think that Henry Schein's stock could continue to shine thanks to its stout technical indicators. In fact, both the MACD and On-Balance Volume are displaying strong momentum buy signals. At current levels, Henry Schein appears to have support at its 10-dma at $36.75, with additional support coming from an intermediate uptrend line formed earlier this month. At this point, there is no significant resistance until the January 1999 highs of $46.50. Traders considering a position in Henry Schein should look for strong volume, 200,000 shares or more traded by noon EDT, on a move through Monday's intra-day all- time high of $38.54 or a bounce off support at $36.75 before placing their trades.

April, 22nd @ $38.00 Change since picked +0.36 Stop loss @ $35.00

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