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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (4654)	1/24/1999 9:43:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

sean sanders: I usually do not make stock recommendations. I took a quick look at DOCSF. I view all charts in Semi-Log, as that has worked best for me over the years. Per the trend lines on the chart you linked, it is displaying a negating break. However I would suggest you begin the upper trend line at the Nov 98 high and connect to the Dec 98 high. You will see the controlling upper ascending trend line and it may be just adjusting. The formation initially is a bearish pennant/rising wedge formation, which a break to the norm would be down. However, these formations can sometimes "morph" into a similar bearish formation, the bearish flag. Before I would assume a technical negation of a bearish formation, I would make sure it is not "morphing" into a bearish flag. In other words the upper ascending trend line could be adjusting to the point of being parallel to the lower ascending trend line thus forming a bearish flag. Once that possible trend line is penetrated by significant price action then that would be viewed as confirmation of a longer-term trend reversal. In addition, I like to see a little more volume (spikes) prior to or soon after a bottom as an indication of accumulation. I do not see this in this stock. This stock has made significant gains since the Oct 98 low, but has been quite volatile. Bearish pennants/rising wedges and flags are rising consolidation patterns and can be traded. I did not take a strong look at the fundamentals, as I always do before taking a position trade. There may well be a reason to expect this issue to negate the bearish formation thus confirming the Oct 98 low was indeed a trend reversal pivot point. I did not find it with a quick glance. That volume spike you see could be investors being drawn in by price action. Or, as I said above, there may well be some fundamentals (news) that is driving this stock higher, of which I am not aware. Chart formations are not 100% Goodluck trading... (All Disclaimers Apply) BWDIK Regards, LG