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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Kerry Lee who wrote (1722)	2/11/2000 6:20:00 PM
From: Redfisherman	Read Replies (2) \| Respond to of 2347

Kerry: There are many ways to analyze both technical and fundamental aspects of a company. I am not a big fan of Point and Figure as it is based entirely on price movement and ignores volume altogether. However, I also have a friend (who I have profound respect for) who swears by it and has done well for many years using it. As for support and resistance levels, support is generally found at levels where previous peaks occurred. Look at a 1 year chart for CMTO and you will see support at 35ish...hence my comment earlier that I would consider selling if that level of support were to be broken. Resistance is typically found at previous highs. Since we have never seen 46 before, there cannot be any resistance there. It is possible that "support" and "resistance" have slightly different meanings in the context of a Point and Figure analysis. Often a stock will pull back on reduced volume by 50-100% of its advance after a break-out, prior to charging even further ahead. Perhaps your friend's 37 "support" level is really referring to an estimate of the expected maximum pullback? Similarly, a cup/handle break-out often advances by an amount equal to the depth of the cup before stalling for a while. I would judge this to be in the mid to upper 50s. But maybe your friend's 47 resistance level is really a P&F estimate of the expected length of this leg up? Anyhow, my opinion is that if it pulls back to 35-36 on falling volume and then starts moving back up from that level of support, that would be the lowest risk/highest reward time to buy more. Just remember, TA isn't right all the time...not even most of the time. But, it is right more often than not. The trick is to sell fast when it leads you astray and hold on when its right.