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.

Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (1627)	11/9/1999 4:53:00 PM
From: keith massey	Read Replies (1) \| Respond to of 5053

Wayne The problem I have is I fail to see the .89-.93 support/resistance.... you are talking about. I see very little stock that actually traded at these levels therefore fail to see the support/resistance you talk aobut. I based the support zone of .88-.92 on several factor and do think it should support for the stock. It is not always about the number of shares traded at a given levels but how the stock reacted to those levels in the past. I like to have several signals telling me where support should be. 1. As you see on the most recent chart, the fib. retracement numbers are .92 for 38% and .87 for 50%. Both of these levels normally provide support on a pullback. You will notice that these levels box the support zone. 2. The gap on the daily chart at .88-.90 should provide support. When a stock gaps up and doesn't close the gap on the same day it means there was a fairly dramatic shift in investor sentiment. On pennies gaps mean far less but since this gap was made on high volume and went right through a prior resistance zone I would consider it fairly important. 3...MOST IMPORTANT I have been watching the price action on this stock very close over the past year. When a stock rallies to a price and hits a wall over and over again this is normally considered resistance. It doesn't have to be on high volume although this will make the signal more powerful. You will notice that there was three prior rallies to the "support zone" followed by a dramatic pullback. The day the Medsite.com news cam out the stock was stopped cold at .88. and pulled back hard. The prior price action at this level indicated that this was the point where people were willing to sell their stock and other did not want to buy. This is a magic level drawn in space and it doesn't need to happen on high volume. When we broke through this .88-.92 level on high volume there was a fundamental shift in investment psychology and this prior resistance level should now become support. As usual I could be wrong but I do see this as the first support zone for the stock. Best Regards KEITH