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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Aronoff who wrote (12964)	12/5/1997 9:32:00 PM
From: Alan Aronoff	Read Replies (1) \| Respond to of 29386

I've noticed another interesting development with ANCR's chart. The angle of the trendline from March '96 to Jan '97 (slanting up...bulls in control...basically the 200 DMA) is almost identical to the angle of the trendline from May '97 to Oct '97. Furthermore, the angle of the trendline from Jan '97 to May '97 (slanting down...bears in control) is almost identical to the angle of the trendline from Oct '97 to Nov '97. Another interesting similarity is the shape of the chart from March 14 (the day of the going concern/revenue recognition announcement) to the May 5 rally which looks quite similar to the pattern from Oct 30 (earnings report) to the present time. The May 5 rally was 35 trading days after the March 14 collapse. It has been 25 trading days since the earnings report. So, if history repeats itself, as it has been doing with the trendlines, there should be a breakout rally in about two weeks. Projecting the 50 DMA two weeks into the future puts it at around $6 1/2...a possible breakout point. I have read that trendlines will often trace the same angle time and time again in a given market because the key players seldom change. It will be very interesting, and potentially very profitable, to see if this theory continues to hold true with ANCR. BTW. I wish I had a good link to a chart to illustrate my point for those of you who don't have charting software. Unfortuantely the only clear way to really see what I am describing is to look at the chart full screen and magnify the specific areas. Then draw the trendlines connecting the lows for the uptrend and the highs for the downtrend. Have a nice weekend all quantum.com