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

To: Wayners who wrote (19250)	7/17/1998 12:37:00 AM
From: joe	Read Replies (1) \| Respond to of 45548

Wayne, thanks for the T/A discussion. As I study COMS' daily patterns, I've come to have a lot more appreciation on the T/A way of looking at things. It appears to me that COMS is somewhat of a 'classic' T/A example in this 'consolidation' - moving up business, correct? Anyways, sounds like you think a buy, on the way up, right after we pass $31, is the relatively sure time to get on the train without going backwards again - correct? Breaking $31, after all this consolidation underneath, will cause momentum to move up another level, and break that $31 1/2 resistance point. Is this correct? Personally, I would think that $31 is not the 'stop buy' point. I would make it more like $31 1/2 - $32... just intuition of past resistance points I've seen...and thinking that a lot of those people that initially bought at around $31 3/4, after earnings report, want to get rid of this stock since they didn't figure on the psychological torture of going back down over 10%. They expected easy $$ with a quick move up to $35... (even I did<gg>, but nothing is going to shake my shares from my firm grip<gg>) Let me know what you think? thanks, joe

To: Wayners who wrote (19250)	7/20/1998 12:23:00 AM
From: Michael Turner	Respond to of 45548

Wayne, Using stops is an excellent way to trade breakouts. As you probably know, historical support/resistance once broken can result in a very rapid gap move. By waiting for confirmation of a breakout, you can mitigate the risk of getting hit. You are also right that (in the absence of impactful news) that support/resistance levels can yield high probability results if you enter the trade at those levels. However, trading a confirmed breakout using stops often yields an even higher probability for success with lower risk of a gap move against you. Michael Turner Author DayTrading into the Millennium tradersresource.com