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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (21101)	11/11/1997 11:07:00 AM
From: Meathead	Read Replies (2) \| Respond to of 176387

Hank, I'll explain it to you then: The classic trend reversal signal had to do with a simple analysis of price and volume action. "When the price continues to make new highs on declining volume, you have a divergence, a classic bearish sign." Is this always an indication of a trend reversal? Absolutely NOT, but it's a fundamental observation taught in all TA books. Pull up a 1 year price/volume chart on Dell and you'll see what I mean. Look at the average daily volume from Jan thru July. Then, beginning in August about the time of the split, notice the avg daily volume steadily decline thru the first week of Oct. During this time the stock continually made new highs. Now notice the volume surge in mid Oct that failed to drive the stock price higher... an almost perfect textbook example. This is easy to see in hindsight. I began to notice the trend in mid September in became a little concerned but after years study, I put very little faith in TA to predict price moves consistently. It predicts the past real well though<ggg>. So Hank, no offense but, if you are a chartist, you must be a rookie. MEATHEAD