To: blankmind who wrote (32850 ) 2/2/1998 10:21:00 AM From: username Read Replies (2) | Respond to
I look for the stock to trade in its current range, (28-31), until it holds above 31 on good volume, (5-6 mil), for at least 3 or 4 days. At that point, I see very solid support at around 31, I would be more confident about the long term prospects on the stock, (not to say I'm not confident now), and I see no significant resistance at 34. I believe that the remaining short interest will cover when this support level looks real to them, so that will be a good confirming signal when it occurs. The next solid resistance I see will be at around 39, and after that, around 45. I also believe that TA factors are predicated on the fundamental news; I believe that Mory not appearing at the Monty "dog `n pony show" is a good sign; I think he hates that sort of deal and has delegated these things to those who are better at it. I would like to see more and better PR coming out of the company. I look for the time frame on the stock movement to align with future contract announcements; I don't believe that the stock will be a "day trading darling" in the next quarter, (as it was on its way down to 22). Should the current chart pattern hold up well, the stock should move into a trading range of around 5-8 points on its way up to 45, and if I were trading the stock, which I am not, I would look for entry and exit points in that range. I have a target on the stock of 51. I think a very strong fast upward move, (9+ days up in a row), would not be a great TA signal, I would much prefer a cleaner rise while holding the 5-8 point range. I also believe that the stock will perform well regardless of the overall market, and do not anticipate any significant bad news in the next 2 or 3 quarters. (Bad news could, of course, change everything.)
