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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (18206)	1/3/1999 11:34:00 AM
From: DanZ	Respond to of 53068

SNDK. Larry and Anna, Here's my read of the SNDK chart. First, I'd like to say that oscillators such as stochastics and MACD work better with the trend than to predict reversals. In other words, stochastics tend to give better buy signals when the %K crosses above the %D if a stock is in an uptrend. Likewise, they tend to give better sell signals when they cross down on a stock that is in a downtrend. Stochastics can also be used to find divergences between price and cycles. In the case of SNDK, the stock is in an uptrend but I don't see any notable pattern in the stochastics and would largely ignore them in this case. Likewise, I don't see any notable pattern in the MADC and would ignore it as well. Both of these indicators are basically trendless. Here's how I read the chart. SNDK has followed a steady up channel the past couple of months and temporarily meets resistance near its upper daily bollinger band while finding support near its middle daily bollinger band. If the up trend is going to continue, I think the stock needs to close above 14 3/4 to 15. The lower daily bollinger band is near 12 and I would sell the stock on a move below that. Extrapolating the up channel out further, I would expect resistance in the 16 to 16 1/2 area and that's where I would take profits and look for a lower entry. Coincidentally, a gap was left on the daily chart between 14 1/4 and 15 7/8 on June 19. While it is partially filled, I think this area will resist the stock in the short term.