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Strategies & Market Trends : Stochastics -- Ignore unavailable to you. Want to Upgrade?

To: sammy levy who wrote (186)	2/18/1998 10:11:00 AM
From: Wayners	Read Replies (2) \| Respond to of 927

WTT has been forming a really long basing pattern (pennant/symmetrical triangle). Draw lines across the price peaks over the last couple of months and draw lines connecting the price bottoms over the same period. You'll see the trinagular shaped pattern. You get large price moves after you get between 2/3rds the length of the pattern to the apex of the triangle. The pattern is characterized by decreasing volume and decreasing price volatility. If you have the patience, you buy into the pattern and wait for the break. Since the long base has occurred after a downtrend, the bias is for an upward break. Short bases are usually continuation patterns with the break predominantly occurring in the direction of the existing trend. Any good news from this company will let 'er fly. I'd say longs have been accumulating shares and shorts have been slowly covering. WTT isn't a good short term play because of the wait involved for a breakout.