Matritech (NASDAQ - NMPS) Message Board

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Biotech / Medical : Matritech (NASDAQ - NMPS)

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To: P. Ramamoorthy who wrote (115)	7/15/1996 12:02:00 PM
From: Patrick Tang	of 849

Ram: To spot a flat-base breakout is rather easy. Try this: 1. Select a stock with a pancake (flat-base) formation with only minor price movements up or down for an extended period of time. 2. Draw two lines: one at the bottom of the pancake representing the support level and one on top of the pancake representing the resistance. This chart should have the appearance of a rail road track. 3. Watch the price movement of this stock: if the price shoots up penetrating the upper railroad track (resistance) with HUGH volume (approx.10 times the daily average minimum), it is an upside breakout. Conversly, if it penetrates the lower railroad track (support) with or WITHOUT volume, it is a downside breakout. It is as simple as that! Please note volume has to be there to signal an upside breakout, and is a PREREQUISITE ingredient. For downside breakout, volume is less important or sometimes not even needed for a valid signal. After the price braekout, news or announcement normally will then FOLLOW, underscoring the superiority of tea leaf reading: technical ALWAYS precedes fundamental. Happy trading!

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