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Play of the Day (For Friday)
Interactive Chart
Thursday, March 08, 2001

AYE – Allegheny Energy Incorporated $47.50 +0.38 (+0.50)

Thursday's Comment:

The state-by-state restructuring of the electric utility industry offers a rare opportunity to build a major independent power- producing businesses. Just a handful of companies are poised to benefit from this transformation, of which Allegheny is certainly one. To take advantage of the rollout, AYE is seeking to achieve critical mass through a combination of new energy plants and the transfer of existing generating operations to unregulated status. We’re expecting this positive news to propel AYE shares higher. But we're not counting only on news. Looking at the chart, AYE appears to be gaining momentum off its recent low. The short-term technical indicators also point to higher levels, with the MACD flattening out after the recent decline and the stochastic showing a bullish crossover. With that said, we’ll look for initial resistance to come at the $49 mark (all time high), followed by a more difficult test at $50. Support will come at the 20-dma of $47.06, with an additional base at the March 6 intra-day low of $46.43. Look for entries on bounces off support or a break above $49 on volume of at least 300,000 shares traded by noon.

Picked on February 22nd @ $48.22
Change since picked –0.72
Stop Loss @ $45.94

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