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Technology Stocks : DoubleClick Inc (DCLK)

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To: zalesky who wrote (2127)	5/19/1999 11:11:00 PM
From: Thomas C (Hijacked)	Read Replies (2) of 2902

I have an observation and a prediction to make about DCLK's recent 2 month price activity from a technician's perspective.... The recent price activity looks very similar to a symmetrical triangle formation. This situation occurs when traders are trying to make up their mind. This pattern is also sometimes referred to as a 'coil' because prices exhibit a diminishing trend as time passes. The analogy is that the coil spring is wound tighter and tighter and then snapped free as prices break out from the apex of the triangle on a noticeable pick up in volume... It is characteristic for volume to dissipate to an abnormally low level as time moves on within the triangle...(ie. today's volume of only 771,000) The case can be made that we are very very near the apex of this triangle and ready for a very large one day upside move (the spark for the next significant rally), possible on the order of 10 to 20%. This case is strengthened from the current MACD outlook. Given how technical analysis amazingly seems to coordinate with the news events, it is very likely that this up move will be accompanied by a significant positive news event.. PREDICTION: Within the next 5-10 trading days we will 'break free from the coil' and have a large one day upside move on significant volume. This breakout should mark the beginning of a significant new rally which will attempt to test and possible break to new highs... RECOMMENDATION: Start to take aggressive positions in DCLK ASAP given that any delay could mean missing the 'breakout from the coil' (which could be a large one day move of 10 to 20%) Thomas C PS A very similar technical situation occurred in DCLK during January, February 1999. PPS I will refer back to this post within 10 days!!!

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