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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Tom Ardnij who wrote (11402)	11/29/1999 12:21:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

Is QCOM showing us a wedge? A bit of TA speculation. I've seen a few mentions recently in different places concerning QCOMs chart pattern. People are seeing a "decending wedge" or pennant formation. TA advocates believe that such formations can portend big moves up (but could also lead to a big move down). If anyone is interested I will provide some information, and an example of how this works below. The essence of a pennant is that the stock moves up dramatically in a very short period of time - that vertical run forming a 'flag pole' on the chart. Then the stock moves sideways, its daily range getting narrower each day (forming the flag or pennant), as the stocks volume tapers off. Take a look at this chart for JDSU 38.186.148.51 The flag pole is formed by the run from around $130 to $200, then a wedge-shaped pennant is formed over the next few days as the stock drops into the 190s and 180s. Ideally the pennant should be downward sloping, which it is in this case. Then the stock starts another dramatic run up, moving from the 190s to 260 or so. In the classic case, this second run is equal to the initial "flag pole" run. Now look at QCOM 38.186.148.51 Notice the length of the pole, the recent pennant formation and the drop off in volume as the pennant formed. The last point on the chart may (just may) be the start of the second run. StockHawk