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Technology Stocks : Meade Instruments Corp MEAD -- Ignore unavailable to you. Want to Upgrade?

To: Islander who wrote (114)	3/29/2000 9:42:00 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 175

Glad to Islander. MEAD exploded on 3/13 as you know, at which time it left it's 10 day ema in the dust. On 3/16, it began to be "pulled back" to the 10 day ema, forming a short bull flag in the process, and when it got there, immediately took off again. So, the 10 day ema seems to be solid support. Three more up sessions followed, during which it again got out ahead of the 10 day ema, and over the last four sessions it is again being pulled back, again forming a short bull flag. The 10 day ema right now is about 57, and the bottom of today's candle is 59. So it's almost there. When it reaches the 10 day ema (probably tomorrow), it will likely move sharply up again. That's what I meant when I said before that the chart was "shaping up nicely"; i.e., it's fueling up. Supporting this scenario are several other positive technical factors, specifically: 1) decreasing volume as the flag forms, but still high volume compared to the 30 day average volume; 2) a bullish last candle, a tall white body with little or no tails; 3) OBV angled upwards, and pegged out at the max; 4) continued stochastic crossover buy signal, which actually occurred on 3/21; 5) Williams %R and RSI both angled up, and in the high end of the range; 6) Price ROC crossover and buy signal continues; 7) MACD crossover signal continues, with very tall histograms; and 8) MFI also angled up (increasing), suggesting "smart money" continuing to move in. In short, I'm hard pressed to find anything bad to say about the technicals here. EXCEPT: crucial overhead resistance is about 70. It looks like MEAD will test this tomorrow. A successful test here, meaning a close or two above 70, would constitute an upside breakout, with nothing but blue skies above. An unsuccessful test would throw more uncertainty into the picture, but assuming support was not breached, would not necessarily be a bad sign at all. For anyone holding this stock who is getting nervous, a stop just below the 10 day ema would probably be about right, i.e. at about 55 7/8. JMVHO, of course.......... Walkingshadow