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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: rkf who wrote (6480)	1/17/1998 11:39:00 AM
From: Douglas Webb	Read Replies (1) \| Respond to of 14162

Doug, any thoughts on CCing with MAVK or SMOD. Both look attractively priced now, and the premies are juicy. First let me point out that I'm no good at fundamental analysis, unless it's a company I'm very familiar with, like CREAF. So my comments are strictly due to technical analysis (which I've been teaching myself since last May.) First, MAVK has been in a downtrend since early October, but that trend appears to have stopped. Even on a five-line break chart, there is a white bar at the end, which was created a few days ago. MAVK seems to have found strong support at $20. webbindustries.com The white bar indicates that the downtrend has ended, not that an uptrend has necessarily begun. An uptrend will be confirmed with a close above $20.563, which will create a second white bar. So, that is probably a good entry price, though you want to be sure not to buy heavily until it closes higher than that. Looking at the candle chart, there appears to be support/resistance lines at $20, $27, $32, $34, and $41. You can see these as places where the TLB envelope held steady for a few weeks, and also as peaks/bases/50% retractments in the candles. So I would guess that these are your price targets. SMOD appears to have had a stock split in mid-Dec, which messes up the TLB chart. But it looks to me like there was a general downtrend in place which probably would not have been broken yet, though it might be close. I'm guessing that a break above $28 would signal the reversal. Doug.