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Technology Stocks : Zitel-ZITL What's Happening

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To: Philip H. Lee who wrote (324)10/24/1996 12:47:00 PM
From: M. M. Jones   of 18263
 
It seems to me that "technical analysis" is important for two reasons: (1) It helps in understanding and predicting speculative trends in the market. (2) It also shows a history of the stock. Viewing a chart in terms of the company's long-term strategy and its public announcements, you can make better evaluations about how it is perceived by the investment community.

In addition, if you see the stock move above both the 200 day moving average (for example) _and_ the 50 day moving average (for example), that should be a stronger indication of the stock's current stength than if it moved above the 50 day alone.
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