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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: emichael who wrote (3310)	4/16/1998 9:12:00 PM
From: Maui Jim	Read Replies (1) \| Respond to of 6565

Which makes us wonder what VLSI's stake is worth? Could be reason for the late strength in VLSI shares; Even if it's not a big item on the balance sheet, the positive reaction to the ARM technology should reflect well on VLSI, who is responsible for putting the ARM core into many of those products...

To: emichael who wrote (3310)	4/16/1998 9:17:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

Given the recent volatility, I wanted to provide some observations on VLSI from a technical perspective. I am very bullish on the stock and here's why. The middle bollinger band near 18 has supported the stock six days in a row and did so again today. The middle band is now rising, indicating rising support. The stock rallied off the middle band today and closed on the intraday high. This is a very bullish reaction to what could have been interpreted as a bad earnings report. This infers that the stock has already discounted last quarter and is looking further ahead. The upper daily bollinger band is now rising and will not provide as much resistance as if the upper band was sloping down or flat. Money flow has been positive five out of the past six trading days, including today. As I posted this afternoon, the volume on the decline this morning was very low and was followed by increasing volume on the way up. The stock has traded sideways over the past week and this has allowed the technical indicators to return to a neutral reading. This should allow the stock to move higher with more ease than if the indicators were extended. The stochastic and MACD are on buy signals. The momentum is up and there is clearly a lot of demand for the stock. Tomorrow is options expiration so I wouldn't expect it to move much past 20. However, it would be particularly bullish if it closes over 20 1/4 tomorrow. I feel strongly that VLSI will move up to test the weekly resistance between 24 and 24 1/2 before it runs into much trouble. Dan