Bridges Initiatives Inc.
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sadie RE: Sadie, 3/21/99 / 5:13:27 PM 210579
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Hi streetalk: In regard to BIT now - the TA is actually not too bad. The stock seems to have found support in the 3.05 range and it might just turnaround at this point. The long term trend is bullish, based on the moving average, but the stochastic is showing bearish indicators - but this is common when a stock is consolidating - as BIT is. The candles -- on Friday was had a dragonfly doji which indicates a possible reversal. The trading pattern also showed Double Doji candles, which also could mean a resersal and the candle patterns also show a doji star which may be a reversal -- lots of "Mays" It is that kind of pattern - might be a turning point after the correction from $4.00 to $$3.00 - about right for a correction - 1/3 -1/2 of the previous run. So, BIT is certainly not a sell is you hold the stock - at least I see no sell indicators, but it is also not showing any real bullish indicators - so it is hard to call it a buy. So, it is a real
gamble at this point . The volume pattern is good at this point. If you buy now - play a stoploss at $3.00 - if it can break upside through $3.50, it will likely see $5.00 very easily - so there you are - the risk factor is .25 and the reward potential is$1.75 -- not a bad risk/reward ratio.
If you like the story and the stock - you could buy now - but watch that stoploss on a break under $3.00 - hope this helps streetalk -- Confirmation on the new uptrend would be a white candle on Monday, with a higher high then $3.24 and a higher low then 3.05 - it this happens, the stock is likely on its' way to new highs - as a trader, I would be moving in as I see the new highs are going to hold - on the weekly chart, the breakout buying point is at $3.50 - you lose a little profit, but at least you know the stock is on its' way to $5.00 or more.
Sadie
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