[ T.A. Observations for QSNDF ]
On a Close-only chart basis for QSound Labs, the upward trend since July of 1997 is in jeopardy. A number of indicators are giving coinciding bearish signals: stochastics, RSI, MACD, Omega Research Expert and Larry Williams Indicators, a violation of the 50 day moving average, rising volume on weaker days, and a bearish breakout from a Wedge chart pattern (on 1/20/98). Apparently, the news dissemination of the hearing aid delay, plus currency concerns (at least mine), in addition to other possible, unaccounted for factors, are adding to the stock's current weakness. Be aware that other traders who continually lurk on the Silicon Investor threads use posted information to make trading decisions. I somehow do not believe that the recent dissemination of disappointing news about the hearing aid rollout and the recent price weakness was a coincidence. Based on the supply/demand factors of the stock, the issue could trade to as low as $2.60 before some stronger support makes itself evident. The only good signal though is the presence of some (theoretical) support coming from the bottom Bollinger Band. It would be prudent to hold current positions, but I would express caution given the current trading conditions for QSNDF, and would not recommend adding to one's position unless the stock falls near the vicinity of the above stated support level.
Rainier |
