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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (65159)	7/15/1999 10:41:00 AM
From: DRRISK	Read Replies (1) \| Respond to of 97611

K, I follow TA and the reasons are obvious! The fact that the stock is overbought and that it needs some time to consolidate is the resistance now. A lumbering giant needs to build up some energy to climb higher and restore itself to keep going forward. It runs out of steam and then gathers itself up on its journey. When a stock has the amount of shares that CPQ has it takes time to get through these types of barriers to going higher. Even the money flow which ebbs and flows needs a break to gather itself up. These are the resistances in the upward trend right now which are completely predictable. The stock is trading great and we are going higher in the next few trading days maybe not today though. That is why the trend is your friend. DrRisk

To: Kenya AA who wrote (65159)	7/15/1999 5:59:00 PM
From: Christopher	Read Replies (1) \| Respond to of 97611

Kenya, How are you!? I haven't seen your memos on CPQ for a while so I was wondering if you still here. Just for the record, the open space you are referring to(if I am interpreting correctly) is called a gap. Gaps do provide support and resistance. If you look at CPQ chart you will see that on 05/11/99 CPQ reached 27 on the way up and turned down all the way to low of 22.50 on 6/17/99. So the gap between 25 and 30 provided an area of resistance for CPQ and CPQ turned down the first time at 27. Now CPQ is challenging that area of resistance again. Good trading, Christopher