Knight-Ridder (KRI)

Knight-Ridder has been the hot topic of a buyout for a while. At this very moment, 2:15am Monday morning, finally the deal is officially out. McClatchy is buying out KRI in a cash and stock offering, paying $67 a share with 60% if cash and rest in stock.

The stock is sure to gap up on market open. I'd be aggressive buyer if the stock opens any less than $67, which is highly unlikely, but doable if the trader acts fast enough. The stock is showing a clear breakout as shown in the annotated TA attached. The stock has been trading in channel since November, and all indicators are showing a very probable breakout.

- Resistance is breached.
- MACD is not only crossing its EMA, it's stepping into positive realm.
- CMF is uptrending.
- RSI is uptreding.
- A doji is on wednesday, followed by a long-legged doji, after which BB are breached from the upside.

* Click on the picture to see a larger version.

Alright folks, I'm going to watch the market open for this one in a few hours. Expect a bullish run on heavy volume.

Night. Or morning I guess.