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To: DOUG H who wrote (726)	5/18/2001 9:24:43 AM
From: Venkie	Read Replies (2) \| Respond to of 13815

Sonus Inc. (SONS) - This firm makes products that support voice and data networks. Wednesday traders went long as the stock bounced off a low of 26.68. Thursday SONS ended at 31.15 on heavy volume for a total possible gain so far of 16.75%. We suggest tightening stops to protect profits and adding to long positions on a move over 32.68. If shares hold over 33, the next resistance is near 45. If they fall back, take profits and look to go long on a bounce near 27.25. Optionable. TRADER'S TIP: Resistance Becomes Support. As stocks move up they tend to create bases where they trade sideways for awhile. This "backing and filling" behavior builds a "base" or a level at which the market agrees that the price is fair. As events bring volume into the stock and the price lifts, the "base" becomes a "support level." Typically a stock will fall to support and bounce back up if no new news comes out. But if a stock tumbles through support, that level becomes overhead "resistance." Most of the tech sector has broken through numerous support levels. As it begins to recover, traders face this overhead "resistance." Sellers who see the stock make it back to their buy point are often willing to dump it just to break even. The price cannot rise through resistance until the supply of sellers is exhausted. For example, SONS couldn't move over 33 recently, but it looks like it might this time around. If it does, resistance will become support. But remember a temporary spike above support may still crumble. So look for buyers to come in as it bounces down. This "tests" support and serves as a confirmation that it will hold.