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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Sam Scrutchins who wrote (9220)	2/27/1998 6:46:00 AM
From: Ghassan I. Ghandour	Read Replies (3) \| Respond to of 10836

Sam - You did a very good job predicting this rally and where the resitance was gong to be. Failing to break through 10 was very negative so far on technical ground but, giving the acquisition and resulting dilution it is hard to see how it could have broken through untill more data is at hand regarding the acquisition. So, now you are right about testing support (it did rebound from 9 1/4 before - i.e. three trading sessions ego). It did go a tiny bit below that this second time. That is precisely why I posted the correction to my post. We may still rebound here (as you say) and consolidate between 9 and 10 but, if we break 9 downward then we may see some accelerated selling that would be stopped only by fundamentals i.e. by the people with some inside knowledge. What will happend in the meeting will, of course, be reflected in the stock but people have tendency (nowadays) to sell on the news. Novell's up trend may help a bit here but the bad news from VLSI will put pressure on the techs today. Good investing. Ghassan.

To: Sam Scrutchins who wrote (9220)	2/27/1998 9:01:00 AM
From: Bipin Prasad	Respond to of 10836

Watching the charts Technical analysts see tech share 'breakout' cbs.marketwatch.com "Watching the charts - Technical analysts see tech share 'breakout' By Binti T. Harvey, CBS MarketWatch Thu Feb 26 16:29:17 1998 LOS ANGELES (CBS.MW) -- Faced with disappointing earnings, bleak 1998 outlooks and ongoing concern about Asia, many analysts expect technology stocks to pull back from their recent gains. But technical analysts say their charts show just the opposite. The Pacific Stock Exchange Technology Index has climbed 12 percent since the beginning of the year, even as analysts and companies alike have expressed caution about uncertainty caused by the deterioration of Asian economies. "Companies have been trying to temper this enthusiasm," said analyst Rick Berry at Argus Securities, "but the market is divorcing itself from all fundamentals." Berry sees more risk in Asia, and expects the market will receive a "wake-up" call by mid-March. Technical analysts expect the exact opposite. They say technology stocks are on the verge of a "breakout"-- a sudden, prolonged upswing. Watching charts Unlike research analysts, who make projections based on fundamental financial data, technical analysts draw conclusions based on the patterns of charts tracking price and volume movements in stocks. Technical analysts look for stocks that trade flat for a period, followed by a gradual decline and rebound before resettling at the previous high. Chartists say stocks that form this "cup-and-handle" pattern are prime candidates for a breakout. See Technical Charts Dain Bosworth analyst Robert Dickey expects technology stocks to break out along with the Dow Jones Industrial Average in coming weeks. Dickey noted that the sector has been trading sideways for the past 7 or 8 months, with strength rotating among the different groups. According to Dickey, the Amex Computer Technology Index in particular is close to an upswing. "It's not quite there yet, but its close to its previous highs. If it gets more than 5 points above 525, I would call it a clear breakout," Dickey said. The index is currently trading at 522.46. Due for rally Richard Dickson, technical analyst for Scott & Stringfellow, believes that while the performance of the entire technology sector could best be described as mixed, tech issues are due for a rally. "Most of the strength has come from semiconductor and computer issues this year, but all of the broader-based indexes are approaching their highs. By and large, the entire sector is close to breaking out." Even technical analysts acknowledge the fallibility of their methods, however. Despite the current strength of the sector, chartists caution that some segments might be overextended. "Software is due for a modest pullback, and there have been lots of bounces in chips and drives," said Dickey. Furthermore, Dickson noted, indexes tend to rise and fall with certain large-cap issues, indicating a greater degree of strength than if all stocks were evenly weighted. "Ultimately, it's still a stockpickers' market," Dickey said. Binti T. Harvey is an online reporter for CBS MarketWatch.