Coinstar, Inc. (Public, NASDAQ:CSTR)-TECHNICAL PLAY

Coinstar--$53.02; +0.25; optionable): Coin counting machines

After Hours: $53.02

EARNINGS: 04/29/2010
STATUS: Flag. CSTR gapped higher on its late April earnings. Not a puny gap, but a big 20% move. Breakaway gaps tend to continue in that direction, and sure enough CSTR did just that, rallying higher even through the early May flash crash. Last week it finally tested, fading back to close Friday just over the 10 day EMA near support. Classic flag action that is testing the strong upside move. If CSTR continues higher from here we are looking at moving in to catch the next leg higher.

Volume: 1.94M Avg Volume: 1.238M
BUY POINT: $53.66 Volume=1.8M Target=$61.94 Stop=$51.08
POSITION: CSTR 10J50.00 - Oct. $50c (66 delta) &/or Stock

http://www.coinstar.com

http://www.google.com/finance?q=NASDAQ:CSTR