Matria Healthcare (MATR) - January 27, 2008

[Harry Aloof]

From Wall Street Trader's Column

MATRIA HEALTHCARE (MATR-Nasdaq): Technical Viewpoint: From a low of $21.79 on Jan 15, 2008 prices rallied, reaching a high of $31.57 on Jan 17, 2008. A decline saw prices pull back, reaching a low of $28.50 on Jan 22, 2008. Another rally saw prices penetrate resistance line "A", closing yesterday at $30.69. Technicals: MACD Index (MACD): A Buy Alert! was given on Dec 26, 2007 when the solid line crossed the dotted line to the upside. Support: Remains at $29.00. Resistance: Is at $31.57. Point & Figure: Reversed to the upside on Jan 2, 2008. A P&F downside reversal takes place at $28.00. Summary: Technical indicators have turned bullish. BUY! MATRIA HEALTHCARE (MATR-Nasdaq) @ $31.13 Stop: Use a protective stop of $29.13. MATRIA HEALTHCARE is currently trading @ $30.69 plus $1.01 on Jan 25, 2008.

Price Objective: $39.75
Risk/Reward: $2.00 VS. $8.62
Today's Risk Reward Ratio: 4:1