Lender Processing Services Inc. (LPS)

Lender Processing Services Inc. (LPS) is forming a rectangular top. This stock chart formation is also know as a channel. A breakout can occur in either direction. This stock has been on an uptrend so the bias is up. But it's best to wait for the breakout. To calculate a minimum target price, read on.

Subtract the lower horizontal trendline from the top horizontal trendline. In the case of LPS this would be about $3. For a upside breakout, add this to the top trendline (i.e. about $46/share for LPS). For a downside breakout, add this to the bottom trendline (i.e. about $37/share for LPS). These are the minimum price targets.

For a maximum price target, measure the length of the formation and apply the same logic above depending on which way the stock breaks out. You kind of have to eye-ball it. Also, we don't really know the length at this point since the stock hasn't broken out yet.