John and All,
This thread has been quiet of late and that is not necessarily a bad sign as you don't have to filter out the hyperbole to get to the "meat" of the subject.
As I have previously posted, the anticipated bearish turn in the "market" averages will have a negative affect on individual stocks in the broad market; this is certainly true of LCAV. In times like these the investors are not thinking primarily of the returns ON their principal, but the return OF their principal. In other words, it is time for caution rather than speculation.
With LCAV hitting a low of $2.875 on Tuesday (8/4/98), any possible continuation of the positive trend will be interrupted until a good support price can be confirmed. As of this date the following are the support prices in the order of their importance underlying this issue:
Primary support $2.875; secondary support $2.70 (LSQFT or mean average); $2.61 (200 day WMA); $2.57 (233 day WMA). Should these prices fail, look for a move to $2.03125 (price high of 3/23/98). What I'm not saying is that LCAV will absolutely go to these lower prices, but what I am saying is that this stock will not establish a positive trend until a good base is formed at one of these lower price levels.
In my opinion (IMO), LCAV will test $2.75 and possibly $2.625. What is certain is that the recent news release (7/28/98), had very little positive affect on the price performance. What the long term holders of this issue have to consider is that it will be at least three more months until the next quarterly report is released until any potential good news can be expected. In the meantime prices of all stocks will be at the mercy and vagaries of a bear trending market.
The following are a reading of the technical indicators for LCAV:
Short and intermediate momentum indicators (MMI's) are sell; long term MMI is hold; stochastic sell; OBV: daily = negative (money moving out on balance) weekly = neutral (static at equilibrium no perceptible on balance money flow in or out);RSI negative trend (bearish); Point & Figures chart downside projection $2.75 and $2.625.
In summary the bar chart pattern show share distribution with little evidence of accumulation. Daily price vs volume pattern shows evidence of "selling on rallies" as opposed to buying on dips.
Harry |
