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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: jimbos who wrote (85974)	1/10/2000 12:27:00 AM
From: American Spirit	Respond to of 90042

Jimbos, I'll let proton from the Rande board answer that one. "On Friday (1/7), BEBE tested its October low. The test appears successful: 1. The low at 18.125 held, with contracting volume on the hourly chart. 2. Fourteen-day RSI was marginally higher at Friday's retest than at the October low. 3. The plunge below the lower Bollinger Band, followed by a return within the Bands, is good corroborating evidence for a bottom. 4. Daily momentum measures are nicely oversold. Williams %R (a personal favorite) is already turning back up. 5. One can argue that a Hammer formed on the daily candlestick chart on Friday. It's not perfect, but, given that it occurred on a retest, it may indicate a trend change. I prefer trend confirmation over trend change TA, so any one or two of these arguments wouldn't turn my head. All five make for an interesting trade. I would consider establishing half my position now (I would have considered at the close Friday, but I was in the trenches with an NT trading position at that time). The other half? Either on a breakout of 20.125 (bottom of long black candle on 1/4) or near a retest of the low (18 3/4 or so). My initial stop would be 17 13/16, but your mileage may vary. Follow-up stops in the range 19 7/16-7/8. P. "