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 : Red Hat Software Inc. (Nasdq-RHAT) -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (829)	8/25/1999 8:56:00 PM
From: Nelson Chang	Read Replies (1) \| Respond to of 1794

Technical analysis revisited... Last Friday I stated the following: >>>There are only several days trading on RHAT, so intraday charts are necessary for analysis - which is limited given its an IPO. The range is $60-75 and we are smack in the middle. Volume is drying up, as can be expected if you are comparing it to the 1st days of the IPO and since volume is drying up in the market overall going into the Fed meeting. "IF" I had no position in this stock at the moment, based purely on TA, I would not be inclined to take a position. I would wait till we are out of this trading range and volume again picks up. I've also watched level 2 every trading day since RHAT has gone public, and there isn't a convincing move in one direction or the other yet.<<< This "ynot" character called my TA a "big stretch" and "misleading" saying: >>>technically seems to imply analysis while viewing that the price is in the middle may be considered technical in a stretch, a big stretch, it is misleading it implies a greater sophistication, or even effort, period so here is my techincal analysis, daily candlestick chart iqc.com. volume decrease is precipitous, implying loss of buyer interest last candle is bearish engulfing pattern, the most extreme form<<< So now in hindsight, who's TA appears most sound? A few things I did not say in my post. First, I have used TA for more than 10 years, and have beaten the market 8 out of the 10 years with it. Second, you do not develop a "most extreme form" of a bearish engulfing pattern with only 1 week of trading. Give me a break. As for RHAT, we are now at the top of the trading range. And as expected, RHAT hit resistance at 75. A few observations of mine. Sell orders on level 2 for RHAT is thinning out. Volume picked up as the stock rose. Institutional interest in RHAT is picking up slightly, but not significantly. The following things to watch for. RHAT volume as it goes back into its trading range or breaks the range. Reaction on news/coverage after the quiet period. Is anyone out there finding this useful, or am I full of it???