These two stocks have already broken out of a bullish reversal pattern and look ready to invest in either through buying the stock or using options to invest with.
MB Financial Corporation, (UMBF) a multi-bank holding company, provides banking and other financial services to commercial, retail, government, and correspondent bank customers. Its Commercial Financial Services segment offers commercial loans, letters of credit, loan syndication services, consultative services, and various financial options; asset-based financing, asset securitization, equity and mezzanine financing, factoring, private and public placement of senior debt, and merger and acquisition consulting services; and depository, account reconciliation, electronic fund transfer, controlled disbursement, lockbox, and remote deposit capture services.
UMBF bounced off the neckline it challenged to define it as support. It recently broke out bullishly from the neckline if an Inverse Head & Shoulders formation; It is free to now move up. This has been a top regional back for years and has placed second in overall service as a top commercial service lender in the Kansas City region for the last three years. We like a long term investment in this one right now. We are concerned about resistance levels just above 44 but if it breaks through here it can go even farther this year.
Tenet Healthcare Corporation, (THC) an investor-owned health care services company, operates acute care hospitals and related health care facilities. The company's general hospitals offer acute care services, operating and recovery rooms, radiology services, respiratory therapy services, clinical laboratories, and pharmacies. It also provides intensive care, critical care and/or coronary care units, physical therapy; and orthopedic, oncology, and outpatient services; tertiary care services, such as open-heart surgery, neonatal intensive care, and neuroscience; quaternary care in areas, including heart, liver, kidney, and bone marrow transplants for children; gamma-knife brain surgery; and cyberknife surgery for tumors and lesions in the brain, lung, neck, and spine.
THC has already broken through the neckline and is on its way up. It can bullish climb another 18% before it is challenged by resistance. Looking like it has already tested the neckline and is going to continue moving up, we like a straight up call options buy for this one. Look at buying the May 2012 '7' call presently priced at $0.20. With the way it is moving, there is a reasonable chance that it may reach this point before May and a resale of the option at that point would make a good profit.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.