The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Instock who wrote (6644)	10/29/1997 12:03:00 PM
From: Doug R	Read Replies (1) of 79279

The Chart, NOIZ has begun an uptrend recently that is well supported by more volume than it has enjoyed in 5 yrs. The series of higher highs is taking shape while the lows are moving up at an accelerated rate in the last month. It is very early in the process of advance. The events of the last week caused NOIZ to break the recent acceleration in its uptrend (as they did with most stocks). The fact that NOIZ has returned to this uptrend quickly. This indicates that NOIZ deserves its uptrend and the acceleration was not due to irrational exuberance. The low of Monday sets up an uptrend line of support that is higher than that accelerated from so the downside safety net has been pulled up closer to the stocks current price. This is very encouraging. The current overall pattern of the chart now looks to be a forming inverted head and shoulders pattern with the possibility that a right shoulder will be formed in the next week or two leading to a further breakout into new higher territory. This will give plenty of opportunity to enter the stock at reasonable prices. The Technicals The short-term SMI is very strong with the lows in the indicator staying well above the oversold level for the last year. This indicates strong hands are in the stock and the freely traded shares have not been subject to emotional swings of selloff or short-term trading. The intermediate term SMI is well into the bullish range of values and is trending up strongly giving the stock room to reach into the $4 range before any resistance in the indicatis reached. If this indicator can break that resistance, prices on the stock would approach double digits but it's too early to tell if that resistance will be broken. The long term SMI has recently broken through the neckline of an inverted head and shoulders formation suggesting solid momentum in the stock. The 89 day MA/MLR exhibits an optimum crossover the first week of October as the price pulled back from its first higher high in the current uptrend. The continuation from that area offers good confirmation the the uptrend is solid. Bollinger Band activity is neutral at this time. This is likely due to the recent activity in the overall market. The 55 day commodity channel index has a very strong long-term uptrend that is currently +100 with the indicator itself on support and turning up with the likelihood of a move through the +100 area very soon giving the price of the stock a good probability of near term significant increase. The shorter period CCI's are neutral, again due to recent market gyrations. The 34 day RSI reached the critical level of 50 on Monday and turned sharply around from that point and is currently moving up. All period MA's are properly aligned and moving up after all periods from 13 on down converged recently and are now seperated again. This reinforces the stock's momentum and verifies that its return to the uptrend is solid. The MACD which expectedly had some trouble with recent activity is set to become positive again. The intermediate-term stochastics are just beginning movement toward a positive crossover that will take this indicator to the bullish range of values. The long-term stochastics are also in this position. This indicates that the next move up in the stock could be quite strong and could occur shortly.

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