Ed:
It appears that nextel is repeating the pattern of the past several months. A sharp runnup in price and then a retracement on declining volume, followed by another sharp run up. From my perspective, it appears that either the price has declined to its 28 support level and is getting poised to breakout or the price will breakdown as you suggested. From the information, I have been receiving, it appears that a resumption of the up move is imminent. I am expecting several noteworthy news releases that will precipitate the breakout. First, the introduction of a newer lighter phone, second, developments in their foreign markets, third, a rosy third quarter report. The breakout scenario has also improved with the return of the bull as fears of a replay of the 87 selloff dissipate.
Should one of these events either not occur or be a dissappointment, then I would think your looking for a fibonnacci retracement might occur.
Ken |
