Anyone familiar with TA?
As the price kept dropping last week, I emailed a friend I met here on s/i who makes all his decisions based on TA and nothing more. I never gave much credit to this style of trading stocks but was shocked to see the accuracy of his calculations. He dosnt read a single news release, analyst research report, or quarterly release. nothing. just tons of formulas to calculate overhead, resistance points etc etc..
ok- my point is, I begged him to take some time to look at our TDFX on Thursday and received some positive feedback. In short, he feels that resistance is holding at $16 so this is probably the bottom. If we break down here, we should stop again at $13-14. He also feels that if he were looking to be a buyer, he would put his buy limit in at $20 since he has that pegged as the upper resistance and a break above $20 would be a true reversal. Overall, he felt it we hold $16 over the next few days we should see a nice rebound since it looks like the damage is pretty much done.
My question to anyone here who is familiar with this type of investment style, when he talks of holding $16 for example, on friday- we broke down to 15 7/8 on very weak trading but management to close at $16. Does this mean we broke the resistance at $16 and should see a drop to his next level possibly? or is a close at $16 considered still 'holding' the current resistance level?
im praying our friends at TDFX get the banshee out the door mid August. We need any help during this slow period, especially since most of us are probably comfortable saying v-2 sales will start to pull back at this point as well as pricing pressures. I agree that any negative comments during conference call or with the report on July 15 looking forward could cause a nice drop in share price regardless of how well we do this quarter. |
