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Strategies & Market Trends : Charts With An Attitude; Trading In & Out -- Ignore unavailable to you. Want to Upgrade?

To: Dave H who wrote (4374)	12/17/1997 10:39:00 PM
From: Ocote	Read Replies (1) \| Respond to of 4701

I notice INTC broke out from a H&S in July 96--with a vengeance, and that it broke down breifly before doing so. I'll try to take that as a warning not to get too overconfident. I've been looking at the CPQ chart again: iqc.com I'm interested in what happens when the price tries to get above the neckline at 58, which now seems to be resistance. Notice the volume dries up. Also notice how the volume jumps up for every down. I suppose if my TC2000 were working right now I could see that on the OBV indicator. Also, the RSI dropping down below 50 at a sharp angle(as it did today on the 60 min chart)has preceded a previous drops of various size. We'll see if that happens tomorrow, since it could not rally above 58. I'll go look at MRK and INTC now. Ocote

To: Dave H who wrote (4374)	12/17/1997 10:55:00 PM
From: Ocote	Respond to of 4701

Dave, Re MRK and INTC MRK's down volume remained small during the breakdown around OCT 28, when kicked in with large volume, breaking the neckline resistance easily. It looks a lot different to me than does CPQ now. INTC looks to be sitting right at the neckline, closing at its daily low. One idea that seemed to come out of the seminar(tell me if I'm wrong) is that if a point of support is long standing with many points defining it, it will likely take more than one attempt to break it. This would suggest to me no to hurry a short on INTC if it breaks below 69. It would likely retest once or twice. Hopefully there would be some clue in how this retest is done. I'd be interested in your thoughts. I am trying to get a "feel" for how these stocks behave. Ocote