To All,
On my last post #94 (10/7/97) I indicated that their was no convincing technical arguments for a positive or negative breakout. For short term traders the argument was settled on the side of the bears, the price dropped below $3.375, and the sell signal was given.
At the current time the stock is $3.00 (H=$3.00, L=$2.75, V=1,500 Shares.). The short term trend is negative; short term momentum (MM) indicator is buy, but intermediate to long term MM indicators are sell to neutral; OBV and RSI are in negative trends; downside support is $2.625 while the upside resistance $3.375. With the exception of the increase of the average volume (more formally known as Least Square Fit or Mean Average) all other TA indicators are either negative to neutral. The increase in the average volume is encouraging over the long term, as it is generally associated with stock accumulation (a positive factor).
The question in this writer's mind is, "how long will this accumulation require until the stock breaks out in a positive trend". Fundamentals and the condition of the stock Market will give that answer. In light of the perceived topping action of the overall stock market, stocks in an accumulation phase should be avoided in `Bear Market' trends (you buy stocks for price appreciation at the beginning of not at the end of the bull market).
In my opinion LCAV is due for a test of $2.625 and possibly $2.50. Upside resistance $3.375 and ultimately $4.00/sh. Long term holders of this issue will be rewarded in time, but for those wishing to put their money to better potential gain consider other Eximer Eye Care stocks with better performance.
Harry |
