some quick TA on WorldCom (WCOM):
what a terrible looking chart
caught in a steady downtrend since last Nov, really since June99
a downtrend channel had been holding its grip since then
the lower boundary was violated in early August
I believe recently WCOM was downgraded, hurting it badly
believe it or not, WCOM is finding support from Sept98 levels
that support seemed strong way back then, but still relevant?
doubt it
now 30 is just a round number offering strength
daily stochastics still look miserable
relative strength hasnt gotten off its back yet
volume was sharply higher a couple days ago
if this is a signal of exhaustion in the decline, not a good one in my view
often with lower boundary trendline violations,
any rebound is met with more selling once that boundary is touched again on the other side
got an 18day MA at 32 now, which might offer resistance
got a 30day MA at 35, which together with old support, might offer additional resistance
got a 50day MA at 36.5, which together with old resistance, might offer even more resistance
lastly, I see a triple downleg Elliott Wave decline
the second downleg was biggest, with a gap included lateJuly
these usually are followed by a double upleg reflex recovery rally
I wouldnt look for much past 35-36 in such a recovery
this puppy looks really ugly and dangerous
if Elliott knows best, you might get a feeble doubleleg up soon
fwiw, belatedly
/ Jim |
