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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: Duke who wrote (906)	5/10/1998 9:53:00 PM
From: HeyRainier	Respond to of 1720

[ ELGT ] Duke, This is an interesting one all right. Whoever found this deserves some credit. I can see that Doug R is bullish on this issue, and for good reason. There was a very significant trendline breakout just recently on ELGT. I had previously drawn a trendline that extended as far back as late 1991, and when I finally updated the data with a current download today, one could say that the recent price developments were in line with the bullish expectations others on SI had about the issue. Key indicators became decidedly bullish in late March. I do not believe though that this can fall under the category of a "Rational Trade" (a trade that is attractive from both a TA and FA perspective), for I can only get a glimpse of the TA aspects of this stock. There is little coverage or financial information on this, and without the FA to combine with the TA, I can only categorize this as a TA trade (for clarification purposes). Though the near term price characteristics are bullish, I do not concur with Doug R's observations regarding the target price. Significant overhead exists at the $5.00 level, and I would seriously question observations that call for $6.00 in six weeks (if I have that number correct), given that the price congestion at $5.00 was in place for well over a year (from 1992). If asked to make an observation about the likelihood of a six week movement penetrating through a one-year price congestion point, I would be apt to say that it is unlikely. Target: $5.00. Regards, Rainier Reference: "...and ELGT to 6 in 6 weeks or less... from: exchange2000.com