Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (22955)	6/18/1999 1:17:00 AM
From: Ed Forrest	Read Replies (3) \| Respond to of 41369

To all the members of this thread: A question has arisen and I'd like responses,if you would, to the following question: Does it matter to you if the news concerning AOL is current or old? Thanks Ed Forrest

To: Teresa Lo who wrote (22955)	6/26/1999 11:59:00 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 41369

Weekend SnapShot - Focus on America Online (AOL) This is a special update for AOL, as it is approaching a very important juncture. During the recent sell off, AOL tested long term support at $87-$89 seen on the weekly chart before it began a bounce. On the daily chart, coming into this week's trading, we anticipated that sellers would be overhead at the 20-period exponential moving average in the $110-$113 area, with more resistance at the $120 level, given the strong downdraft. This week, when the bounce lost momentum at the 20-day EMA, sellers came back into the picture. At this point there are three scenarios, or set ups, to consider. The first is the test of the recent bottom. We have drawn Trader Vic 1-2-3 lines on the daily chart at $116 5/8 and at $89 ½. If AOL tests $89 ½ in the coming week, it may not break down given support is somewhere in the $87 area long term. It may hold support there even though a new minor low is made, forming a Trader Vic 2B bottom. The second set up is intriguing. At the June 14-15 low, AOL made an island reversal, meaning it gapped down into the low and then gapped up out of it. This is a very unusual formation associated with climaxes. With the recent bounce, there is a case being set up for a reverse head and shoulders bottom with an island reversal as the head. The neckline is at the $116 area at the moment, so if the gap in the $99 area holds support and it bounces from here, there will be a first step towards confirming the pattern. The second step will be to overcome sellers in larger time frames in the $107-$110 area. The third step will be the neckline at $116. The third possibility is a break to new lows if long term support does not hold. For a summary of the Trader Vic 1-2-3 set up, please visit intelligentspeculator.com Vic Sperandeo's book is at amazon.com Charts specific to these comments have been posted to intelligentspeculator.com