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Technology Stocks : PMC-Sierra (PMCS)
PMCS 11.650.0%Jan 25 4:00 PM EST

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From: David GarrisonD11/21/1999 1:03:00 AM
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Bill O'Neil, the founder of Investor's Business Daily, believes that you can learn a lot about what a particular stock is likely to do next if you study price charts. Many stocks that go on to climb higher first form what he calls a cup with a handle pattern. A downward sloping handle can actually signal future price growth. It is during this period of time (typically a week or two)that the price drifts below a prior low a few weeks earlier. Trading volume dries up, because people aren't willing to sell their shares. This paves the way for a renewed advance.
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