3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00160

0.0%

Jan 16 9:30 AM EST

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To: joe who wrote (18653)	7/5/1998 6:47:00 PM
From: Wayners	Read Replies (2) of 45548

On Bay I was really referring to the move up on 13 May. I was long BAY befor the gap up and sold at $27 3/4 with the intention of buying back in at $25. Never did buy back in though, playing something else. With BAY the gap up occurred because BAY came out and said they rejected a takeout offer as being too low. It was rumored to be an offer in the high 20's to low 30's. The price drifted back down to $25 not because there was bad news--but rather because there was no more additional news. People took profits just like I did. $25 offered the support because that was previous high. Those that missed buying BAY before at $25 bought this time around given the second chance. That's why support levels work from previous highs work. It identifies price areas where there will be increased demand to slow any downward momentum. The slowdown in downward momentum feeds on itself. Shorts cover increasing demand and before you know it price is reversing to the upside. May not even take any news to get it going. With BAY the acquisiton rumors started to fly again. Hard to breakdown why a move occurs. Everybody has a different reason. Its rumors, news, technicals etc. I think the retrace would have happened whether there was a gap or not. I thik the gap helps the retrace, but it wasn't required.

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