AR,
The fact that the indecision flag forms and is drawn out in time, is that the trading activity of all current bull and bear participants has caused the trading range of LCAV to narrow eventually to an apex. This is generally accompanied by a decrease in volume. Eventually when this pattern breaks out of the apex, either the bulls or the bears will win out for the moment. This is usually short term trader activity, which in the long run will not establish the long term price trend of the stock. This trend will be established by the fundamentals of the company (good or bad).
So what is happening now is a long drawn out battle between the bulls and the bears; and trying to get a correct reading on this pattern can be frustrating.
Getting back to TA, a short term sell signal was given today. At the last price quote (3:45 PM EDT), $3.00(H $3.125; L $3.00; Volume 44,500 shares), we don't want to go below $2.875 or we will see a retest of $2.75 and lower. The intermediate and long term MMI's are in a buy-hold mode which should sustain a long term continuation of the price trend. In other words, for the buy and hold investor, ride it out.
One negative factor to be considered, was the rally failure on 7/1/98, which should have been helped by the LCA Vision's news release of that date. The fact that it didn't suggests that there is are negative fundamentals (real or imagined) underlying this issue. Time will tell and in the mean time keep the faith.
Harry
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