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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: SpongeBrain who wrote (9030)	1/2/1999 1:41:00 AM
From: Daflye	Read Replies (1) \| Respond to of 12039

Dan, my TA is very basic, for now. Open this link in a new window to see the chart I used. investor.msn.com In retrospect, the first buy signal doesn't really come till about OCT 96. Though weekly volume does double in Sept96, but that's probably because of slower trading in the summer. In OCT 96 KLAC starts to break above its 200DMA (daily moving average), and in NOV volume really picks up, and stays heavy till it peaks in Aug97. I think that the first real sign of a top comes during the week of 8/25/97. Its a classic double top. I used "classic" heh heh heh. Trading volume is at least 3 times normal for the week and KLAC doesn't break thru its old high. Thats also reffered to as "churning". Not a good sign. Alot of people would view that as the time to get out, or at least as a short to mid-term high. But the real confirmation of an impending price breakdown comes around 10/6/97 when KLAC breaks down thru its 50DMA on 2-3x normal volume. And the latest buy signal seems to come around the week of 10/5/98, when KLAC breaks up thru its 50DMA, again with a volume surge. Of course, in retrospect, that week was a buy for nearly everything. My analysis is very, very simple, but I hope it gives you a little something to think about. Any and all comments and criticisms welcome and appreciated. Night night Darin