Stock Attack -- A Complete Analysis Message Board

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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Judy who wrote (12420)	7/20/1998 1:26:00 PM
From: Robert Graham	Read Replies (2) of 42787

CMGI does indeed look interesting! I see it may consolidate at this point with 83 providing resistance along with the range of 73 to 75. It is at its 9 day EMA and holding. The stock appears to be supported right below resistance. Looks like its getting ready for another move. MACD and Stochs have flattened out. The price action has left the stock and the volume is diminishing. This stock is unusual. Take a look at March to June. When the stock moved to up to a new high, it pulled back under volume which is what I would expect for a stock like this. On successive challenges, volume tends to go down instead of up. After it "rests" at the top with price action and volume down, then activity comes back into the picture to take the stock back down. It is as though the players is the stock are anticipating the previous high as resistance. However, when the stock encounters that same resistance to move through it, the volume is high before and after the break through. Now we have had peak and subsequent sell off under good volume and a rebound off of its 20 day MA. Now the price action has flattened the the volume has diminished. Which direction from here? BBs are still very wide. If the longer term trend is still intact, it will move up and break though the resistance it is just below perhaps not after subsequent challenges. Otherwise it can rechallenge its 20 day MA. It may even rechallenge its 20 day EMA before continuing up. I personally would not enter this stock until a breakout has occured. Even then, I would watch the tape closely to see what it does at 83. IMO this may be good for an 8 point profit. I think it will be more interesting to play the breakout from 83 which I do not think will happen in the very near future, perhaps a couple weeks of more away. Good signs is the bounce off of the 20 day MA and the support provided by the 9 day EMA so far. Something will happen soon with this stock. The negative sign is the selloff breaking through your 13 day EMA and the MACD both indicating a loss of momentum. The stock bounced from this selloff but halted its progress to end up in this type of consolidation pattern. The consolidation is not a surprise in this situation. All EMAs are still uptrending: 50, 20, 9, and 5. Unfortunately the next move made by this stock may be down. The 20 day EMA is at 66 and a significant support at 61. Its 50 day EMA is at 54. I think the speculators played this for its momentum characteristics on its last uptrend. The momentum may have topped out on this stock for the longer term. I think we will see a continued consolidation before the making of any new highs with this stock with a possible rechallenge of its 20 day EMA. Bob Graham

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