VLSI Technology - Waiting for good news from NASDAQ !!! Message Board

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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!

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To: Yiqun Xie who wrote (3272)	4/4/1998 11:20:00 AM
From: DanZ	Read Replies (2) of 6565

Yiqun, VLSI failed to hold support at the upper daily bollinger band yesterday and it closed back inside the daily bands. I now think there is risk to about 18 1/4 and resistance at 19 5/8. The weekly chart looks very good and the odds are high that the rally will resume if it closes over 19 5/8. I would only sell VLSI if you are a short term trader because I think the trend has turned bullish on the weekly chart and there's no way to tell when the rally will resume. I got a fill on my covered calls (sold the April 20's at 1) so I'm hedged against a minor correction in the stock. IRF looks very good for a short term move to about 13 and longer term, I think it will move back over 20. This stock has bounced off the 11 area several times over the past 3 years and it is forming a triple bottom on the monthly chart. Check out the monthly chart and you will see what I mean. The short term indicators are positive as well. The stock has bounced off the lower daily bollinger band four days in a row and had a positive reaction to an earnings warning on March 31. In addition, the money flow has been very good the past few days and the lower daily bollinger band is now sloping up indicating rising support. Like you said, CRUS has been stuck in a trading range for fifteen weeks. It looks like a good stock to trade between the range until it breaks one way or the other but I don't think it's a good stock to hold for any length of time. Support is at 9 3/4 and resistance is at 10 3/4. The money flow has been poor the past few weeks indicating distribution of the stock. Unless the money flow improves, I think it is more likely that the stock will break support than resistance. We have a general discussion thread set up at exchange2000.com. In the future, it might be better if we chat about stocks other than VLSI over there. :o)

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