AR and All,
A lot of activity in this stock in recent days. No doubt a lot of Summit Technology shares are being traded.
There is a right leg forming on the 'W' or double bottom pattern, as can be seen by refering to a daily bar chart. However, all of the technical analysis (TA)indicators, with the exception of OBV, are in negative (or avoid configuration).
It is too soon for short term traders to take positions. Long term investors with 3 to 6 month horizons, and faith in the company, might chance a buy at these prices. There is clear evidence of accumulation in the recent price/volume activity. However, the stock price must rise above $1.375 and $2.00/share to show any positive price trend reversal. The next upside price resistance will be encountered at $2.625.
As a cautionary note, the state of the U.S. economy shows definite signs of a slow down. If this does happen, small companies such as LCA-Vision, Inc. could have trouble raising money or renewing bank loans. If memory serves, LCA-Vision will have to renew its line of credit by September '98'. This could present a problem unless there is an earnings increase by the 2nd quarter of '98'.
Will continue to monitor the activity of this stock and advise as appropriate.
Harry |
