To All,
LCAV gave a buy signal on 9/9/97, this was followed-up by an upmove on good volume closing at $3.50 on 9/10/97. Today's activity H 3.562; L 3.062; C 3.500; V 2,900 shares, showed little follow through of the short rally.
The current TA statistics are: short to intermediate MM indicators=buy; long term MM=neutral/hold; OBV=negative to neutral; stochastic=buy; RSI=over sold to positive trend.
This stock is in a "classical" accumulation pattern. The price range has been trading between $2.875 to $3.625. The volume "drys-up" at lower prices of the trading range; and with sporadic "spurts" of volume, good percentage increases are observed. This shows a lack of selling interest, but an inclination to rise toward the overhead supply of stocks at the $4.00 price level.
In time this stock will break out to higher prices, but be patient. Due to the "corrective" nature of the stock market, and the anticpated decline expected in the market averages, I have not recommended purchase of any stock at this time. For those currently holding long positions in LCAV, keep your positions. Mental stop losses should be instituted as "sell at market" orders if this issue drops below $2.50/sh.
It is anticipate that LCAV will continue to trade beteen $2.875 and $3.875 for the near future. Any movement above $4.00 can be considered a "break out".
Will continue to monitor this stock and post advisories on this thread.
Harry |
