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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: techtonicbull who wrote (47730)	3/8/2002 10:37:03 AM
From: E_K_S	Read Replies (1) \| Respond to of 64865

Hi Techtonicbull - Generally you want a lower low on lower volume to establish a bottom. I created a weekly chart of price and volume and it appears we may have established this technical formation. For the week of 2/22/02 SUNW reached a closing low of $8.07 (H-$8.83 L-$7.88 C-$8.07 O-$8.78)on 230.5 million shares. For the week of 9/21/01 the closing low was $7.96 (H-$10.38 L-$7.52 C-$7.96 O-$9.37)on 357.5 million shares. We missed a lower low (on the close) by $0.10 BUT there was 1/3 less selling volume which indicates fewer sellers this time around at these price levels. It's always possible that we could test these lows again, but the important factor is that any retest MUST be on lower volume. These price levels are equivalent to the (post split) price adjusted levels which occurred on 11/20/1998. Since this period we never tested these levels other than on 9/21/01 or 2/22/02. Thats a four year test of the prior low. We need to consolidate and distribute shares into new hands perhaps for 6-8 months until we begin to see any significant sustained rally. After that, it is quite possible for previous highs to be tested in 18-24 months. This assumes that the company can maintain their historical 20% revenue growth rate for several quarters AFTER they reach profitability in June. EKS P.S. Sunw to make a "news" announcement at 10 AM PST. Stock moving higher....