Wall Street Traders Column 10/3/05 – Buy WPI

Buy Alert -WATSON PHARMACEUTICALS (WPI-NYSE) Report No. 2138, Analysis by Harry Aloof – Technical Viewpoint – From a low of $33.72 on Sep 2, 2005 prices rallied, reaching a high of $36.13 on Sep 12, 2005. A decline saw prices pull back, reaching a low of $34.45 on Sep 21, 2005. Another rally saw prices penetrate resistance line “A”, closing 9/30/05 at $36.61. Technicals: MACD-Histogram (MACD-H): A Buy Alert! was given on Sep 30, 2005 when the Histogram crossed the “0″ line to the upside. Support: Remains at $32.00. Resistance: Is at $37.00. Point & Figure: Reversed to the upside on Jul 28, 2005. A P&F downside reversal takes place at $. Summary: Technical indicators have turned bullish. BUY! WATSON PHARMACEUTICALS (WPI-NYSE) @ $36.88 Stop: Use a protective stop of $34.88. WATSON PHARMACEUTICALS is currently trading @ $36.61 plus $1.03 on Sep 30, 2005. Price Objective: $47.50. Risk/Reward: $2.00 VS. $10.62. Today’s Risk Reward Ratio: 5:1

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