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: ivan solotaroff who wrote (8312)	11/24/1997 11:54:00 AM
From: Doug R	Read Replies (8) of 79377

ABTE The Chart: (Well, the darned thing gapped up this AM. Who was it?) It's moving up off a retest of a breakout in the major downtrend. The increased volume as it moves at this point is most probably a confirmation that a significant (not straight up) advance over the short and intermediate-term can be expected. The first test will be in the area of $10. Following a likely breakout above ten, 15 to 16 would be the next expected target. The Technicals Stochastics momentum is just beginning the basis of uptrending support. This indicates that it is quite early to be in ABTE and as such the amount of risk may be unacceptable for some. The intermediate term SMI is beginning a move up from its first higher low that was created as the price moved down. This upward movement of the SMI coupled with the downward movement of the price is called convergence and is a bullish signal. The price over the last 4 days has partly been a reaction to this convergence. The 89 day MA/MLR is also in aearly stage. The MLR is currently under the MA and is tracking the MA closely. This is an optimal configuration from which to complete a crossover. Both the MA and MLR should turn up shortly and it would be expected that the MLR will begin to close on and cross above the MA. As the crossover occurs the stock will likely pull back a bit from this current move and form a base before continuation. This activity means that there is no rush to chase the stock at today's price but as it is still early in ABTE's projected overall move, the current price should not be considered "expensive". The Bollinger Bands are in a solid uptrend (21 day BB's appear to be the period that best suits ABTE). This period BB has just started its next swing up from a higher low than the previous swing up and it could be expected that a 10 week trend up is starting. The 55 day CCI is just starting back up from the area under -100. As it crossed above that value there also occurred a breakout of a short-term downtrend. Again this indicates that it is still early in ABTE's possible advance and there are good prospects but inherent risk should be kept in mind. A grouping of 7 MA's from 200 days down to 8 days is converging but not in typical bullish configuration...yet. The current advance in price should bring all the MA's into convergence from which most significant uptrends begin. This too, signifies the earliness of entry here. The MACD has just completed a positive crossover but is still slightly below the bullish threshold. The long-term (244 day) RSI is above 50 and trending up with a trendline that is just now reaching 50. The 144 and 89 day RSI's are currently crossing above 50 after trending down during ABTE's price retest of the breakout. These periods crossing over 50 at this time supports the likelihood that this move up from the retest will stick and continuation to 10 and above is probable. The long-term stochastics call ABTE a bottom fish while the short-term stochastics are very strong which should help bring the long-term into higher values very quickly. The technical profile of ABTE suggests there is an upside potential well above its old alltime high and for the PATIENT and not too risk averse investor, the current price range is a good opportunity to get in very near the bottom of a significantly rapid intermediate-term move. This TA is not intended as an endorsement to buy or sell anything. Last week I TA'd my neighbor's cat and he sold it. He now regrets the sale of his cat but understands the disclaimer I gave him with the TA and realizes that he alone is responsible for his decision.

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