To: Roger Hess who wrote (345 ) 3/13/1998 5:07:00 PM From: Wayners Respond to
VLSI's s support and resistance levels for about a month hold time is the $17-$18 level at the lower end and $25 on the upper end. I see your strategy with VLSI. I was assuming you had a much shorter time horizon than say 4 to 8 weeks. I think the $22.50 to $25 range is totally plausible. I think its forming the base. I'd give it a solid week before its ready to break. A break up will take you to $22.50 in 4 to 6 weeks. A break down on higher than its average volume and I'd say get out. The stochastics are rock bottom low like they were in January. If you look at a 5 day stochastic, just look at the 30 day moving average of the 5 day stochastics. Its down at the 20 level just like it was in January. VLSI just hasn't shown which direction its going. Its definitely got an upside bias and its worth playing on the long side. For a 5 day stock flip, its a wait until I see a break up. 5 days is too long for me to wait while it doesn't move.
