Diversa Corporation (NASDAQ:DVSA)

Deploys its technologies across diverse markets, commercialize products independently and with partners in agricultural, chemical, and industrial markets, leverage the Company’s evolution technologies to develop optimized, second-generation antibody therapeutics through collaborations, utilize strategic alliances to enable the development of a portfolio of products, and protect and enhance the company’s technology leadership position. (Source: Bigcharts)

Over the past year Diversa has been on a run, doubling in stock price. This surge came relatively early in the year and the stock has traded sideways and since gathered momentum that should carry the stock much higher in the months ahead. In the month of September of 2006 you will noticed a drop off in price followed by a reversal on high volume in the following week. This was the moment the bulls were waiting for.

Recently, shares have drifted in a range $10.00-$11.00 per share and now have the momentum necessary to push higher. The MACD and DMI have given their nod of support since the beginning of November and investors like yourself should be ready to pounce all over this play if the stock jumps above $11.00.

Our Recommendation: Buy half of your intended block of shares in DVSA above resistance near $10.88 and place a stop loss at a price 5% below your purchase price. Add the second block of shares to your position on breakout above $11.10/share.

Good Investing…