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Play of the Day (For Tuesday)
Interactive Chart
Monday, May 7, 2001

ASD - American Standard Co. $62.50 0.00

Sunday's Comment:

American Standard Companies is a global manufacturer of air conditioning systems, bathroom and kitchen fixtures, and vehicle control systems for trucks, buses, trailers and utility vehicles. Shares of ASD have been hitting new highs over the past four months following a major breakout from the $35-$50 range in January. The stock closed at an all-time high on Friday and we believe that ASD could continue to move higher. We are also looking for a split announcement with the July earnings report or out of the next BoD meeting. The company has enough shares for a split with 200 million shares authorized and 71 million shares outstanding. Going forward, ASD has support at Thursday's intra- day high of $61.75 with stronger support at $60.33, the 10-dma. Resistance was taken out on Friday so new resistance may show up at $63 or $65. Look for a bounce off of $61.75 or a breakout above $63 on midday volume of at least 200,000 shares before starting new plays. We plan to place stops at $58.50 to limit potential losses.

Monday's Update:

Since reporting its strong quarterly results three-weeks ago, American Standard's stock has inched gradually higher. In fact, it inched to a new all-time high of $63.30 on Monday before finally closing flat at $62.50. More importantly, though, we think American Standard could continue its ascending ways. To that end, the company's stock is looking very healthy technically. Both the MACD and On-Balance Volume are trending higher on the back of a strong intermediate upward-sloping trendline started back in late March. At current levels, American Standard has support at its 20-day moving average at $60.15, with additional support provided by the 50-day moving average at $58.94. Since American Standard is trading at all-time high levels, there is no obvious resistance overhead, though the stock could run into some resistance at the psychologically-significant $65 level. Traders considering a position in American Standard should look for strong volume, 200,000 shares or more traded by noon EDT, on a move through Monday's intra-day high of $63.30 or a bounce off the 10- day moving average at $60.69 before placing their trades.

Picked on May 6th @ $62.50
Change since picked 0.00
Stop Loss @ $58.50


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