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Play of the Day (For Monday)
Interactive Chart
Sunday, March 11, 2001

OAT - Quaker Oats Company $98.80 (+1.72)

Sunday's Comment:

Quaker Oats is seeking to boost revenue growth by 9% for its current quarter. To accomplish this, the company has stepped up marketing efforts on its strongest product, Gatorade. Turning to Friday's action, shares of OAT gave back some ground from Thursday's sharp rally, closing at $98.80, down $0.53. What was encouraging was the weak of volume. The stock normally logs around 740,000 shares based on a three-month average, but Friday's decline came on volume of just 281,700 shares. This is an indication of a lack of sellers in the stock, which could be the result of investors holding onto shares ahead of the upcoming PepsiCo buyout. Bearing this in mind, we feel there's a good chance the stock will continue to show more momentum on the upside. So, to that end, look for initial resistance to come at the $99.33 mark (all time high). A potentially higher hurdle may follow at the century mark, which can often times mark the top of a rally. Support will come at the 20-dma of $97.83, with an additional base at the 3/2 intra-day low of $96.75, bolstered by the 30-dma of $97.11. Look to time your entries when OAT shares bounce off support or break above $99.33 on volume of at least 360,000 shares traded by noon. To limit our risk on the downside, we'll keep firm stops at $96.

Picked on March 8th @ $99.33
Change since picked -0.53
Stop Loss @ $96.00

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