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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis V. who wrote (6294)	12/26/1998 12:48:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Dennis, currently I have a very strong "resistance" in the market at 8650, and a major break if and only if this level is breached (if that level is breached I fear that last year's bottom at 7450 or so will be breached as well, and I have a target of about 6300 or so, but if and only if 8650 is breached which at this point I still think is not likely). I just think that if we go under 8700, VLNC could be dragged down (particularly if we do not get a material order before) below its very strong support at $5, and that could set in motion a very nasty spill down to the 3's and possibly worse if the floorless bandits get into action. You should realize that I am painting "what ifs" possible bad case scenarios. I feel that with FMK and others presence here painting the rosy side, there is nothing much I can contribute to the rosy side they have not already pointed out. I will only repeat an old mantra of mine, if the TA and the FA (as painted by FMK) do not jive, believe the TA. Right now the TA has, IMHO, definitely pointed to a deterioration. The stock should have never breached $7.25 (if you remember my "ominous" post), and until the technical damage is repaired, I believe that some heed should be paid to less rosy scenarios as well. I believe that the last 8-k and S-3 point to some possible problems in the future, and my statement that VLNC must execute flawlessly in the next six months, not only to succeed, but possibly to survive are not "more alarmist" then what reality is. Not having a private pipe line to the company, I am left with company's filing as my sole guide in evaluating the risks and the rewards in this investment. Zeev