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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (18143)	1/11/2001 11:21:20 PM
From: Walkingshadow	Respond to of 19374

HG, I've been fascinated with MDT, but have not been either long or short for some time. Greg and I have tossed it back and forth for a while now. The upshot is that MDT broke out of the trading range it had been in for about a year, closed above it at about 59 on strong volume, made a new 52-week high shortly thereafter at almost 62, then sold off hard, failing not only to take out that high, but continuing to fail right back into the old trading channel. askresearch.com The question I have is whether this consitutes essentially a topping formation, or whether it just means that the breakout was premature. If it is the former, you wouldn't want to be long MDT, and might consider shorting it. If the latter, then buying on the dips as the stock becomes oversold would be the way to go. Right now, at first glance, the stock has stabilized at 53-54, with candles suggesting an upside reversal here, and technical buy signals from oversold levels evident: askresearch.com So, in the very short term, I'd say MDT is a buy. But if the failure has more ominous long-term bearish implications, then MDT would be anticipated to fail as it tested overhead resistance from the descending moving averages, and then sell off hard again. Again, I'm not sure what to make of MDT, and will be very interested to see which scenario plays out. But if I were long MDT, I'd keep a tight stop, and be ready to bail at the first sign of weakness as it tests overhead. As always, JMVHO.................. Walkingshadow

To: horsegirl48 who wrote (18143)	1/11/2001 11:22:51 PM
From: Walkingshadow	Respond to of 19374

HG, I've been fascinated with MDT, but have not been either long or short for some time. Greg and I have tossed it back and forth for a while now. The upshot is that MDT broke out of the trading range it had been in for about a year, closed above it at about 59 on strong volume, made a new 52-week high shortly thereafter at almost 62, then sold off hard, failing not only to take out that high, but continuing to fail right back into the old trading channel. askresearch.com The question I have is whether this failed breakout constitutes essentially a topping formation, or whether it just means that the breakout was premature, and that it is probable that MDT will again break out soon, with the likelihood that the next time will be successful. If it is the former, you wouldn't want to be long MDT, and might consider shorting it. If the latter, then buying on the dips as the stock becomes oversold would be the way to go. Right now, at first glance, the stock has stabilized at 53-54, with candles suggesting an upside reversal here, and technical buy signals from oversold levels evident: askresearch.com So, in the very short term, I'd say MDT is a buy. But if the failure has more ominous long-term bearish implications, then MDT would be anticipated to fail as it tested overhead resistance from the descending moving averages, and then sell off hard again. Again, I'm not sure what to make of MDT, and will be very interested to see which scenario plays out. But if I were long MDT, I'd keep a tight stop, and be ready to bail at the first sign of weakness as it tests overhead. As always, JMVHO.................. Walkingshadow