Egghead Computer (EGGS) Message Board

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Technology Stocks : Egghead Computer (EGGS)

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To: Sycamore who wrote (3511)	11/13/1998 8:03:00 PM
From: Wayners	Read Replies (2) of 8307

Here's what I think--and this is all pretty unscientific. EGGS has a lot of momentum behind it. I like to define momentum as the slope of moving averages applicable to your particular trading timeframe. I like to follow the slope of a 12 day moving average--but that's just me. The slope is still steadily increasing. I've found this simple thing to be the most important thing in gauging the supply/demand imbalance in stocks. Stocks that have increasing slopes behind them rarely just suddenly selloff--and certainly without some devastating news event. All you get on these things is minor corrections on the way up. You often see the formation of bull flags as LG astutely pointed out. When those flags get broken to the upside, the stocks make relatively large and quick moves up. In my opinion, EGGS had only a two day flag on 11 Nov and 12 Nov and today's move above the downtrendline signals a nice move to occur over the next two to three trading days. The uptrendline connecting lows on 60 min chart held when CNBC announced that EGGS CEO will be on squawk box on monday. Just using my usual trendlines I expect a range on Monday between about $13 3/8 and about $14 3/4.

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