<...looks like 28 is the resistance pt>
I wouldn't be too concerned about what I see as only intraday resistance. I was much more concerned about 27 1/2 and, like William, I had not thought we would break it on the first try. Now that we have - and given the chart action - 28 is going to be a piece of cake. IMHO. Here's why i think so.
All of the TA indicators with the sole exception of DMI are positive or improving. (And DMI doesn't count because the ADX line was not rising.) Volume at 11,585,000 was almost double normal volume. Heavy volume like this in TA terms solidifies, legitimates and confirms the underlying 7.26% price rise. In other words, we can be pretty sure that this was no bear trap. It appeared to me that there were surges of buying interest during the day and whenever the quote began to drop volume dropped off also, another good sign. Buyers had no hesitancy holding over the weekend which was a principal concern of mine. Unlike virtually every other tech stock that I follow, COM$ (I love this innovation of Craig's) did not surge in the morning only to see gains fade or even disappear. See for comparison INTC, DELL, IBM, CPQ and CSCO. Did anyone notice how volume literally dried up in the last 15 minutes? A piddling 9000 shares. In other words this rise of COM$ was not propelled by SOES traders. And going into the last hour COM$ was actually rising. In after hours instanet trading trades haven't been lower than 27 11/16 and has been as high as 27 7/8 including a block of 25,000.
Finally, and this was your observation Joe, where I saw it first, there seems to be a distinct move away from the 1998 version of the "nifty fifty." Until this latest 3 day rally, stocks with capitalization over 40 billion has been the place to be. Now, money seems to be moving to the very beaten up, but still good, mid-cap stocks. IMO no other stock quite fits the bill as our COM$. |
