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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Claire G who wrote (25756)	1/24/1999 8:11:00 PM
From: Doug R	Respond to of 79273

Claire, There is a phenomenon that is best described as "exhaustion selling". Upon a bout of exhaustion selling there is a huge probability that the issue in question will experience a technical bounce, RECY is a classic example of exhaustion selling that should lead to a significant technical bounce. While tracking RECY's trades on Friday I noticed that the only trade to cross at 7/16 was a 100K sell. Nasty stuff...no? WELL, immediately after that trade the bid went back to 15/32. The volume at that point was already outrageous so it was kind of obvious to me that a technical bounce was in store for RECY. Also, buying at 1/2 gave me a stop at 13/32 which gives me a hard downside that makes the upside worth the risk. Doug R