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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Rich Wolf who wrote (11252)	5/20/1999 9:11:00 AM
From: William Epstein	Read Replies (3) \| Respond to of 27311

Rich Wolf; Having used TA for several years I mainly agree with your analysis of its relative value to an investor. However, the point should be made that it can prove useful when taken in context. Such as, confirming or disconfirming developing trends. This is important because what may appear to be a trend may have underlying anomalies which disconfirm it. Such as, a price rise even when money flow is falling. This gives a signal to an experienced chartist that perhaps, a distribution is ending and short selling dominates the price/action. As I mentioned previously, it must be used judiciously by the investor after having watched a stock for some time and having become familiar with its trading patterns and its history. One cannot simply pop up a chart like a 30 second infomercial and get anything really useful. With respect to VLNC, I have not found much that is useful from it's charts yet, except the slow rise in money flow, the slow uptrend in average price and the fact that peaks in price are usually accompanied by an average rise in volume to 380-580,000 shares traded on that day. The last may be useful guide in timing sales or short sales. However, I don't have enough experience with the stock to make a definite judgement call. One other thing from the TA suggests that there has been underlying accumulation in this stock during the last few weeks but by whom and why cannot be discerned. My guess it is the MMs accumulating for their own accounts, getting ready for another push up. PHOTOMAN