TA update for those interested ...
Please refer to previous updates at: Message 13318463
Friday's trading was volatile. As the Thursday update noted, Friday was a pivotal day. The stock started selling off just after the open and fell to about $4.00 before it started trading up to close lower (5.78). The bears were happy with the drop below support; the bulls breathed a big sigh of relief to close with just a small loss. Where does ICOM stand now from a technical point of view?
Starting with Worden's indicators: 1) the BOP continued to fall negative; 2) TSV stayed negative and is moving sideways; and 3) Moneystream continued to fall lower. See TC2000 chart at jimbeamii.com.
As for other technicals, stochastics show oversold and, depending on the study parameters, may or may not be improving. On the TC2000 chart, using 10-20-9 parameters (the shorter term), stochastics continue downward and parallel. This indicates that the selling will probably continue this week. Using a longer term parameter (14,3), %K has turned up and crossed over the %D line -- indicating a buy signal at this level. See Barchart at jimbeamii.com for the modified stochastic study and for the other indicators, discussed, below.
MACD fell further Friday to negative territory (-0.08) below the signal (0.25). Thus, MACD is not signaling a buy at this time.
RSI continued to fall and is in the 20-25 range. While overbought, it has not indicated a change in price direction at this time, i.e., no bottom failure swing has begun to form.
The Bollinger bands continued to turn down on Friday and the close was below the lower band -- as well as below the MA20 and just a tad above MA50. This generally indicates a tend reversal to the downside.
Current support is around 4.25 - 4.30 (2/3/00).
While the stochastics are debatable, depending on the shorter or longer term parameter, all the standard indicators generally are weak. BOP continued to deteriorate. Accordingly, it will not be surprising to see the stock price continue to slide until the major indicators start turning around.
The above is based strictly on what I may or may not know about Zen and the art of reading tea leaves.
jbii |
