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Biotech / Medical : Biotech - Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (51)	4/21/2001 4:00:50 PM
From: XenaLives	Respond to of 544

I would like to see someone else answer your question, as I am just learning TA. What I've been having the best luck with is watching the volume accumulation and money flow, looking for stocks that get taken down without reason by the market. Friday I was watching RGEN & GNLB soar and my portfolios went up 20%. I am just starting to feel like I have developed a system and know what I am doing. Perhaps if I had not been learning to trade in such a volatile market, the averages would make more sense to me. So, to answer your question - I worked up a study on spiritsites.com Looking at the six month chart, volume is really choppy but started showing a tendency to smooth out in march. If you go to the ten day hourly chart, the negative accumulation last Tuesday was smaller than the positive spike on Wed. - that's good, but I don't like the negative spike on Thursday. If you look at ten day 15 minute chart, there is a positive bias with a balanced spike on Thursday. The five minute charts show a positive bias on the volume accumulation. Since there was little volume movement on Friday, the price movement is not conclusive for me. I would expect that there could be another attempt to shoot the price down, especially if the market is weak on Monday. I would then buy when the larger blocks start to kick in on the next slide down (like what is shown late Thursday). Of course, it' hard to say what will happen. RGEN went down on bad PR - look at the 4/14 study. I originally bought at 1.80-2 on Wednesday, it was a good company and the phase II was clearly positive, but apparently the investors didn't have the I.Q. required to read the release and understand it. Volume moved in so I felt save following along in the wake of the big boys. Unfortunately, the fear factor was so high that someone was able to take it down with very little effort and it slid downward for several days. Then someone pushed the stock down HARD, this thing traded WIERD - selling below the bid even. Being the contrary old fart that I am, I kept selling things and buying more, some as low as $1.30 (cash value was 1.10). I don't usually have enough guts to move this aggressively but when you look at the two year money flow (04-20 study) this stock is incredibly stable. I am speculating that there just isn't much turnover in this stock so the price action takes place with a small percentage of volume. Perhaps this discussion of RGEN doesn't seem relevant, but I guess that I'm trying to point out the volatility in the current market takes precedence unless you are planning to buy and hold for a while. If that's the case not only Xoma, but dozens of other biotech companies are a screaming bargain right now, so go for it :)