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.

Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (4282)	9/21/1999 12:59:00 AM
From: Dan Clark	Respond to of 18137

Herc, I'd like to respond to your post and do a bit of analysis on PCNTF as an exercise for discussion. PCNTF only had 250,000 shares traded today (9/20) and 50% of that was in the first hour. The volume for rest of the day is so low that it is probably difficult to make any meaningful candlestick analysis on the 1 and 5 minute bars. Even on the 15 minute bars, it's difficult. Starting at about the 30 minute bar level, I see a slightly falling triangle. This would seem to indicate a breakout in the next day or so. On the daily chart, it seems like there is a Trader Vic 2B (double bottom) formed on 8/11 and 8/31, with a Doji Morning Star formation on both. There was a minor high at 33 on 8/18. I placed a horizontal line on this minor high at 33. That minor high was tested unsuccessfully on 9/7 and 9/8. On 9/9, the price blasted through the minor high horizontal line forming a "Long Day" white candle moving from a low of 30 1/2 to a high of 47. It did this on extremely high volume of ten times the 65-day average volume. The next day 9/10, it reached a high of 54 1/2 but dropped that day. On 9/16 price dropped through the 61.8% retracement line, but unsuccessfully tested the minor high of 33 formed on 8/18. In the last 6 days it has bounced around in a congestion zone between the 38.2 and 61.8 retracement of the run from the low on 8/31 to the high on 9/10. In general, this appears bullish except that it is in the congestion zone. Regarding volume, for the last month or so, it appears that volume has increased on up days, while decreasing on down days. This appears bullish. I can't find fresh news for PCNTF in the last week. Given that and the light volume, I would be hesitant to play PCNTF as an intraday trade. However it might be good as a swing trade. I'm not a swing trader. But, if I was (and this is NOT a recommendation), I would probably place a buy order at 43 1/16. This is a tick above the highs on 9/14 and 9/17. It is also solidly above the 38.2% retracement line mentioned above. I'd watch carefully at the $47 point (high of 9/9) to see if it encountered resistance there. Might sell 1/2 the position at the point if resistance was tough. My ultimate short term (3 to 10 days) target would be 54 3/16. This is within sniffing distance of the 54 15/32 high on 9/10. Depending on resistance as price moved close to 54, I might get noodgie and run like at bunny at 53 15/16. OK, that's it. Comments please. Regards, Dan.