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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (18672)	7/6/1998 8:51:00 AM
From: Wayners	Read Replies (1) \| Respond to of 45548

<<Is this always your pattern after a big gap up?>> Actually I look for this pattern when anything breaks above or below a support or resistance level, whether there is a gap or not. It works all the time (daily charts or 5 minute bars). A lot of people miss the first breakouts but they are very frequently given a second opportunity which they don't miss. On COMS after the one day gap up on huge volume--it was too early to call whether COMS was going higher. However after day two, the volume was way off the highs of the day before which waw a big signal that buying interest had dropped and that COMS was not going higher. The $32 1/2 resistance level played into it. There were three previous price lows that line up almost perfectly with $32 1/2. I used to think $30 was a support/resistance level, but I've seen COMS break thorough that 3 times now without barely even slowing down.