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.

Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (1616)	9/7/1999 10:53:00 AM
From: Vendit™	Respond to of 19374

Hi Frank Most technicions use 2 or 3 moving averages to determine a stocks strength and weaknesses levels. They also are a logical thing to use as support and resistance levels. AOL tracked above it's 10 dma for nearly a year before it ever violated it. Each time like clock work the stock would magically bounce to new highs when it touched its 10 dma. The same can be said for QCOM about it's 50 dma as you have pointed out. Guess who bought some more QCOM last week at $161.......it's 50 DMA?<g> The nature of or technical way of thinking and has been my observation is that when a stock moves below it's 10dma it will then seek the 50 dma as new support and if that is breached it will seek its 100 and then 200dma, always pausing on each level before taking on a direction. Any good stock is considered a steal at its 200dma. AOL made that visit I believe. The stock (QCOM) has the technical possibility to travel to a lower support area of about 140 last time I looked. It did form nice intra day support at 160-161 on Friday where I bought it. I think this week it will track higher IMO. The 170's is likely. IMO Vendit