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Strategies & Market Trends : Prosoft Software (POSO) -- Ignore unavailable to you. Want to Upgrade?

To: JERRY GACH who wrote (4)	2/12/1998 12:06:00 AM
From: Mike Medford	Read Replies (1) \| Respond to of 90

Jerry, Since you said such nice things about me and alerted me to the sell off this morning I'll post on your list. :) The chart is showing very strong indications that 6.5 - 7 is a bottom. 1. This was the bottom last June - July. The chart looks like it's putting in a classic double bottom. 2. Notice how volume has picked up the last three weeks during sideways trading. This is a normally sign of "smart" money accumulating at the lows. This confirms Milk's hunch that the institutions are buying. Increasing volume during sideways trading is frequently followed by a sharp rally. You'll remember we worked this scenario recently in AAC. 3. The price has broken the resistance line of the recent down trend. 4. The momentum indicators are giving diverging buy signals. This is a very popular tip off that a good rally is about to take place. I'm keeping a pretty tight stop. If it starts trading below 6.5 we will be in trouble. A couple of closes below that will signal the down trend is still in tact and will be for a while. All in all I think this is a no brainer low capital risk entry area. A buy stop at 9.625 is a good place to add or enter safely. Ultimately I think it will test 17 again. In the near term 13 should be easy. Here is the chart anet-dfw.com Best of luck with this and thanks again for alerting me this morning. Mike