TA ANALYSIS: COMS HAS FORMED A SOLID BASE AT 28 1/2
I don't recall anyone doing any technical analysis on this thread in the past several days, so I'll take a stab.
One of the basic tenets of TA is that the more times a stock has "touched" a particular support level, the stronger it becomes. This is important because it becomes a "base" price which can be a launching platform for the eventual breakout. Essentially, investors lose their fear of/become comfortable holding and/or buying the stock at this price. Amid all the gloom of COMS not being able to hold its gain, of it being such a "dog" stock while profits are to be made in Dell,CSCO etc, a couple posters have noted how profitable it's been to buy at 28 1/2 or so and sell at 30 or so.
That being said, note the following: Since July 2, when COMS broke below 29 for the first time since earnings, there have been 13 trading days. On an intraday basis COMS has "touched" 28 9/16 or lower six times. On 4 individual days it has very briefly broken below 28 1/2 (respectively 28 1/4, 28 3/16, 28 3/8, and 28 7/16) only to "bouce" off these prices to close above 28 1/2.
IMO COMS is gathering strength for a major upward move. |
