WCOM Message Board - Msg: 6810625

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Technology Stocks : WCOM

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To: Anthony Wong who wrote (3561)	12/12/1998 10:44:00 PM
From: Ron Kline	Read Replies (3) of 11568

Volume is not always that important every time a stock makes a new high. It's pretty important in the breakout to a new high after a consolidation but WCOM already did at $58 on pretty good volume some weeks ago. New highs after that point do not necessarily need big volume, but it's a plus if you see it. Not all stocks that breakout on lower volume are faulty. CSCO for example broke out on low volume but continues to climb from its old high. Dell on the other hand broke out on low volume and fell back through it's old support later, so it was a warning sign. The bigger the company the less weight I give on volume and breakouts, but the key is to overcome the resistance from past corrections (people who bought high before the last correction) and usually it takes good volume to achieve that. After it does that most investors who have bought are happy (no pressure to sell)so volume and resistance becomes less of an issue until we go into another correction. Actually tops can be made on high volume especially after a long move up so be careful not too read too much into volume at that point. Ron

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