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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (15438)	4/5/1998 7:32:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68163

Thomas, SEPR looks like it is trying to breakout of a 6 month phase where it was range bound. The current price is above the 9 day moving average indicating the current bullish trend is still intact. The volume has been falling off as the price has risen indicating that buying interest is starting to wane. The price is also getting close to the 20 day moving average of Bollinger Band at 44.75 and this should act as a resistance level. The stochastic is indicating an overbought situation which is normal for a breakout, but there is still no sell signal. The OBV is is confirming a breakout though the trend is weak. Support levels are about at 40, 36, 27. A breakout does not have to be accompanied by volume, but it is usually a good confirming indicator . I recently saw an article that studied breakouts to try to correlate breakouts with increases in volume. The results indicated that not all breakout have abnormal high volume levels. It was in the Technical Analysis for Stocks and Commodities magazine. traders.com You should be able to find the month of the article on this site. Failed breakouts do happen. That is where your knowledge of the news and the fundamentals come in. You need to be able to gauge the risk given what you know. Since the trend is weakening, what rumors or news could drive the stock price higher. If the answer is nothing then you need to judge for yourself if it is more prudent to exit given the support levels and your entry price. If you have a substantially high price target than the current price , you can always enter again at a later date once the volume kicks in. Harry