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Technology Stocks : INFOSEEK (GO) -- Ignore unavailable to you. Want to Upgrade?

To: Mongo2116 who wrote (3384)	4/1/1998 7:33:00 PM
From: James Bowser	Read Replies (1) \| Respond to of 9343

Major breakout of pole-pennant formation indicates stock is going to new highs. The month long consolidation provides fuel for a move to $28.75 which is a 25% move from the high of $22 7/8 once it breaks above that. Pole-pennant breakouts have a high technical reliability rating. Given the group strength and favorable market conditions raises this confidence level. For those who don't know what a pole-pennant formation is, look at a daily chart of SEEK. The recent consolidation looks literally like a pennant flag waving at the end of a flag pole. As the stock consolidates and trades in a tighter and tighter range the end of the pennant becomes compressed. Eventually, enough stock has been accumulated by patient buyers that it exhausts the sellers. When buyers step up to acquire shares at the ask price the stock starts a rapid ascent (begun today), as willing sellers are difficult to find and supply is provided by scale sellers, (unaggressive sellers willing to sell small amounts of stock as the bid-ask rises, but not in a hurry to exit their position), and market makers. As market makers realize the stock is breaking higher technically, they become net buyers, adding fuel to the rally. This is the most successful technical trading pattern I have encountered. In addition, SEEK has an attractive relative valuation to it's peer group which lends fundamental support. Good Luck.