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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: James L. Fleckenstein who wrote (7072)	11/3/1997 8:45:00 PM
From: Sam Scrutchins	Respond to of 10836

The term needs to be loosely used. You are correct in your analysis of the meaning of support and resistance. It is basically the price level where volume is heaviest (factored to a large extent by time). All price movement is psychological, and investors at the price levels "where a large number of shares changed hands in times past", to quote Edwards & Magee, is that location where a stock is likely to meet support and/or resistance, as investors get scared or confident. A lot of shares have exchanged hands anywhere between about 8 1/2 and 10 1/2. You pick your choice of where you think the best support will likely be. Depending on your model, you will be as correct as the next person. BTW, someone on this thread has been quoting 11 1/8 as a resistance/support area. I just don't see this in the charts. Sam

To: James L. Fleckenstein who wrote (7072)	11/3/1997 9:20:00 PM
From: jfb	Read Replies (1) \| Respond to of 10836

James, To my knowledge, the term "support" to refer to a stock price is used in two ways: the first is seldom seen, and has meaning; the second is often seen, and has no meaning. First, the meaningful use.Say you're the director of corporate investing at IBM and management has just decided to allocate $3.5 Billion to repurchase the stock (this actually happened last Tuesday). Say it is your opinion that IBM is fairly priced at $100, but overpriced above that level. You may then issue traders an unlimited buy order at $100. Any tendency the stock may have to go below this level will be overcome by your order, so that you are in effect "supporting" the price at $100. The second, more common use, is the "guesstimate" you were referring to. I believe this part of so-called "technical analysis" to be strictly meaningless, like the whole.

To: James L. Fleckenstein who wrote (7072)	11/3/1997 9:36:00 PM
From: MyStoxGoUp	Read Replies (1) \| Respond to of 10836

Support/Resistance:Borland Support is generally the point at which there is more demand than supply. This is usually a price where a stock has bottomed out in the past. If a stock has traded at a price for a significant time than it is said to have a base,at least 5 sessions constitutes decent support. Borland has strong support at 8-8.5 and 9-9.5. it has stayed in the 8-9.5 range for quite awhile,thereby demonstrating strong support. It has demonstrated strong resistance at 11, only able to pierce this briefly on the heals of a great earnings report and conference call. Closing above 10 for at least a week would give us a new base of 10. assuming a new base of 10,hopefully with some sort of catylyst,ie. analysts rec.,big sales contract,strategic alliance,we can pierce 11 with strong volume and trigger some kind of meaningful rally with high volume and as a result, strong upside momentum. PHIL

To: James L. Fleckenstein who wrote (7072)	11/4/1997 11:10:00 AM
From: Eugene Kislenko	Respond to of 10836

Hi, James: "Support" and "Resistance" levels are terms from the technical analysis world. Even though you may hear a lot of controversy around on "which methodology [technical or fundamental] is better", they both are widely used and have theirs "pros" and "cons". I think you have to employ both methods if you are looking to make long and short term predictions. Back to "support" and "resistance". Basically this is an imaginary lines you can draw by connecting the areas where stock bounces for a while after slide (support), or trying to "break-up" in his advance (resistance). It is common knowledge that in many cases former resistance will become support and vice-versa after stock turnaround. Why they are formed? I think partially because of the "market psychology" (e.g. "It is impossible for this stock to go higher (lower) than this level"), or based on analytical data (combination of current price level, earnings (current and estimates), etc). You may also find in the books some equation between "support"/"resistance" and Fibonacci retracements (e.g. "support and resistance are formed based on Fibonacci multipliers"). Regarding BORL I can see major areas of support/resistance around following levels $6 - $6.50, $8.25 - $8.50, $10 - $10.5. Next level is little bit difficult to imagine now, but based on Fibonacci's numbers (1, 1, 2, 4.) it must be somewhere around $14-$15. Good investing to all EK