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Technology Stocks : RRRR: Rare Medium Group (soon to be) formerly ICC -- Ignore unavailable to you. Want to Upgrade?

To: Mahatmabenfoo who wrote (98)	1/24/1999 5:32:00 PM
From: Jibacoa	Read Replies (1) \| Respond to of 1150

Charles: A near term UPTREND, IMHO, starts when the price has been above the 10 day average and the 10 day average runs above the 25 day average, which in turn is above the 50 day average. In RRRR's case the most recent date the UPTREND started was on 1/6/99 when the 10 day average crossed above the 25 day average at the 3.66 level. How long the UPTREND will last? That of course depends of the particular stock and a lot of variables. Theoretically the UPTREND remains intact as long as the price remains above the 10 day average. When it drops below that line, that should be the first warning that the "momentum" or whatever you want to call it is starting to weaken. If you ever follow a stock's price, you will probably notice the price usually goes up or down on an step-wise "ladder".As long as the price keeps making higher highs in each "rally", the "momentum" remains O.K. When the stock's price fails to rally above the most recent high, most of the time is not necessary to wait for the 10 day average to cross below the 25 day, to notice that the UPTREND has been broken. Of course you have to pay attention to the "resistance levels" in RRRR's case the "doble top" it formed in April and July last year at the 6.50 level and started a DOWNTREND which was finally exhausted after the double bottom in September and October at the 1.63 level. That 6.50 level is still a strong "resistance" that RRRR will have to overcome, before it could try to "test" last year's April high of 7.50 Of course TA has many other "tools" including "stochastics", "linear regression", "envelope channels","Wilder's RSI","point& figure charts" "on balance Volume","time segmented volume", "money stream",etc. etc. And there are plenty of books been written and several "threads" on SI on the subject, for those,who feel that TA is not that "primative". TA doesn't have a 100% "predictive value", but it probably has a better score on that respect that the meteorologists trying to predict what the weather is going to be 3 or 4 days in advance. Have a good day. (Doesn't include a good night)