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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: WR who wrote (17967)	6/4/1998 1:39:00 AM
From: Raymond James Norris	Read Replies (4) \| Respond to of 31646

I've been looking over TAVA's chart recently and noticed some perfect formations. If you despise TA (as I know a number of you do), you definitely don't want to read this post since it involves some rather intricate details of TA. Fibonacci More than a artist and mathematician, some of the crucial elements of Fibonacci's work dealing with higher level Calculus are used in Technical Analysis. Basically, a stock tends to retrace and advance specific percentages of previous moves. The key percentages are 38% and 62%. You'll see shortly how amazingly accurate these percentages are. Looking at a graph of TAVA and not knowing diddly squat about TA, these ratios can be applied. For a retracement level, you take the amount the stock moved from its low to its high and then apply the two ratios to obtain specific price targets. Lets do that now: Going back to the original move that sparked the uptrend for TAVA (recently), we take the 5.00 low and 14 7/8 high. The distance between these is 9 7/8. Now, apply the three ratios: 38% * 9.875 = 3.75 62% * 9.875 = 6.125 Okay, so we've done that. Now what? Subtract that from the high to obtain price targets. Here's where things get interesting: 14 7/8 - 3.75 = 11.125 14.785 - 6.125 = 8. 75 Walla! The 62% level is the exact low from the high of 14 7/8. The 38% level is the exact resistance currently for TAVA (we've hit that price 3 times now and cant get back above). Is that a coincidence? Most non-TA people will tell you so. I've seen this work time after time in my investments so I know it's not a coincidence. What do those numbers mean? Well, the 62% level accurately forecasted how far TAVA would drop. Many investors buy at that level. Does that mean TAVA won't fall further?? Not at all. If the 62% level is broken, there are other percentage levels to determine the extend of the fall. So long as that level is held though, it is bullish. Right now TAVA is basing between the 62% and 38% levels. A TA would buy on the break of 38% or sell short on the break of 62%. I'm hoping for a break above the 38% since I don't short. With today's news, it may look like the 38% will be broken in the future. I have not researched TAVA in depth but am well aware of its business and niche in the market. Of course as all things, nothing will truly happen until we see numbers to verify. Wednesday's announcement was certainly bullish but the action wasn't as confirming. We'll see how the stock goes. Good Luck, Conservatively Yours, Raymond J. Norris