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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: JFitnich who wrote (5360)	1/18/1998 8:09:00 PM
From: Tharos	Read Replies (1) \| Respond to of 17367

More TA stuff, Yes, the proverbial self-fullfilling prophesy. I see it very often in newsletter recommendations. Murphy moved Xoma early '96 (I believe it was April) and if you follow the Bowser Report you will see his people pile on a thinly traded security and temporarily drive up the price. I tend to disbelieve in the random walk theory which implies I believe security prices will tend to react historically. For example, in late October '87 Xoma bottomed in a tweesers formation at $6.75. This would tell a technical analyst to watch this area and in 93, 96 and 97 Xoma's prices tended to react to this price area. Xoma has also been reactive in the 4 3/8 to 4 3/4 area between 94 and now. TA may not be able to forsee this as a support/resistance area, but once an area is defined a person would be wise to watch the stock whenever it approaches one of these areas. Xoma's price also shows reaction to Fibonacci relationships. Call this self-fullfilling if you would like, but you are correct that any person would be well advised to be aware of these things so they can merge their fundamental analysis with TA and improve their overall investing success. Some type of momentum indicator (moving average, rate-of-change) will give you an idea of how willing people are to buy/sell. The higher the indicator in either direction, the more willing. Some type of selling indicator (advance/decline, on-balance-volume) will give you a general idea if there are net buyers/sellers. Regression analysis will give you an indication of where current prices are in relation to your sample mean. Beth likes to use stochastics. Another individual that posted here liked to use several momentum indicators presumably based on the premise that not every indicator is always right. Enough rambling.