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

To: rx4pain who wrote (18950)	2/12/2001 7:56:22 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 19374

Rx, EMC is definitely worth consideration IMO. EMC has pierced the lower rail of the 25 day Bollinger band. Note what happened the last couple of times this occurred: 207.61.23.99 On the daily chart, EMC looks like it has successfully tested chart support at about 53. As you can see from the long-term chart, this is an old area of solid support for EMC. EMC is now extremely oversold, but there are no technical buy signals as yet: askresearch.com However, technical buy signals look imminent, particularly in light of the following: On the intraday hourly 5 EMA/8 SMA crossover chart, a crossover buy signal occurred on the last candle of the day, preceded by stochastic and OBV buy signals: 207.61.23.99 On the 30 minute intraday chart, the fourth candle from the end is a reversal candle. You can see that there are strong technical buy signals, and that there was buying pressure into EMC which began after this candle. askresearch.com Note however that EMC is quite a ways below the 200 min ema. I view this as both good and bad, and the major source of caution here. On the plus side, EMC has gotten too far ahead of the intraday moving averages to the downside, and so is very likely to correct back up to them, or sideways to meet them. On the negative side, this means that EMC is still in a short-term downtrend, unless and until it can successfully test the 200 min ema, and trade above it, and test it as support successfully. So, while there are several good reasons to enter EMC long right now, keep in mind that EMC is in a technical downtrend, and downtrends continue until reversal occurs or a basing/trading range period begins. There are no other possibilities. Whether reversal will occur here or not is too soon to tell, so EMC is guilty until proven innocent in my book. In the short term, there does look to be substantial upside in EMC. However if you enter EMC long, I would do so cautiously, and in particular be ready to exit if EMC gives signs of failure at a test of overhead resistance from the 200 min ema. EMC will no doubt reverse someday, and I think it better to take your profits early and wait for that day if this is not to be right now. EMC's intentions will become much clearer on the intraday chart when it encounters the 200 min ema, you can be sure. If EMC successfully tests the 200 min and begins a short-term uptrend, then the major problem facing it will be the long-term moving average resistance looming overhead. As always, JMVHO..... Walkingshadow