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

To: Kal who wrote (5813)	11/26/1997 12:08:00 AM
From: George Sepetjian	Respond to of 64865

Here's some interesting chart analysis from Microsoft Investors Jubak's Journal and how SUNW has been acting recently. Like the others, Sun Microsystems' year-to-date chart shows a major base at $30 last spring. In the climb to $54 in late August, the stock established very narrow intermediate support levels at $33, $36 and $46 -- none as wide as the support Compaq built at $40. But the one at $46 looks roughly equivalent to the one that Compaq built at $58. Like 3Com, however, Sun had blown through major support levels before the market collapsed on Oct. 27. By that date, the stock had already fallen to $37 and the $3-a-share drop of that day simply returned the stock near the $33 support level. But Sun, as you can see if you look at the August to November chart, almost immediately tested that bottom and fell through it, tested another bottom and fell through that. On Oct. 30, the stock hit $32.875, rallied and then fell again. By Nov. 12, the stock was trading at $31.75. The stock has rallied again since then, but without a great deal of conviction. You can study the fundamentals of a stock until the 10Qs come home, but unless you know how investors "feel" about those facts you'll only have part of the picture. Sun bears watching. Its chart is starting to show a pattern that often points lower over time. Each low is lower -- and so is each high that follows. Investors seem inclined to sell at the slightest opportunity because they've lost faith in the stock's future. To break the pattern, Sun needs a rally that sends the high convincingly above those of the recent past.