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Technology Stocks : Dialogic ready to soar, funds buying -- Ignore unavailable to you. Want to Upgrade?

To: jas cooper who wrote (636)	1/26/1999 8:35:00 PM
From: Robert Sloan	Respond to of 674

I don't know,but this is supposed to be the "Year of Telephony" and Dialogic makes most of the hardware-doesn't it???

To: jas cooper who wrote (636)	1/26/1999 11:01:00 PM
From: JH	Read Replies (1) \| Respond to of 674

50% retracement level for 52-wk chart is at $32-5/16, which also happens to be a resistance from early Sept.1998. Given the huge intraday run-up of over 75% from the lows only a month ago, some of this can be attributed to profit taking. The candlestick formation from today is short-term bearish. Having spotted the bearishness earlier on in the day, I placed a series of sell orders (cascading, with more shares at higher prices) but only managed to sell 1/17th (a seventeenth) of my total position at $30-1/2. For those of you who are holding the stock, I think that the current lack of liquidity will hamper your efforts to daytrade the stock. Until major funds start buying positions in DLGC, expect continued volatility with wide bid/ask spreads. Personally, I have enough confidence in the company to buy back what I have sold so far (at lower prices, of course). I will continue to sell into resistance at $32-1/4 until I see evidence of that resistance being broken decisively. It may sound contradictory, but I think there is better risk/reward ONCE it breaks resistance. Hence, 1) I would not mind selling 75% of my inventory as it approaches $32-1/4, and buying them back on dips. 2) As it breaks $32-1/4, I will only be holding 25% of my initial position. 3) I will sell the remaining 25% when DLGC approaches the next resistance at $34. 4) I will closely observe technical indicators like OBV and CHKO for accumulation/distribution patterns, and if all is still favorable, I will buy back 100% of my initial position around the "new" support of $32-1/2 (assuming that it trades back to those levels). That's my trading strategy going forwards. BTW, the average cost of my purchases of DLGC has been $19.37. I have quite a sizeable position in DLGC.