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Biotech / Medical : BUY RDOC -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (51)	5/22/1998 5:39:00 PM
From: Carolyn S.	Read Replies (1) \| Respond to of 130

Re horizontal support (and we're talking about RDOC here, not RBOT) I'm am definitely no expert, but here goes... When a stock trades in a fairly narrow horizontal (neither uptrending nor downtrending) range for weeks or months, it is "basing" or building a base of people who have bought at that particular level. The selling and buying pressure is very even at that level. If the stock rises above that level, and then falls back towards the base, the base (the entire range of it) can become support --- if the buyers at that level or below hold, and others who wish they had bought previously at that level now buy (like me). For RDOC, the 5 1/2 level was horizontal resistance from about the 2nd week of April to the 2nd week of May. Then RDOC blasted through the resistance, and has since fallen back to the 5 1/2 level, which I hope will now provide support. If not, I would certainly expect support at the $5 level. which has acted as support for 2 months. I asked Jim Strauss about RDOC (he's very good at TA) and he thought we might see it go to 5 1/4 - it was funny because I had just bought at 5 9/16 (bid 5 1/2) when he posted that and the bid went to 5 1/4. Anyway, I think the potential downside is pretty minimal right here. BTW - I believe that "horizontal" support is one of the less strong forms of support, and that moving averages and trendlines are stronger. Jim based his 5 1/4 call on the 89 day moving average, not horizontal support. He said "RDOC still has positive MoneyFlow despite the gap down... The 5 1/2 area seems to be just about right for entry with a possible dip to the 5 1/4 89 day MA area... A nice story..." Jim Carolyn S.