Forum Archive Index - January 2003

[Phaedrus <Phaedrus@techemail.com>]

Hans,
     Here is an updated ION chart for you. I have marked the trendline break 
buy and sell signals with arrows. Note that the latest price is exactly on the 
current trendline - a fall in price here would trigger a sell.
 The significance of the $2.33 peak was not so much the resistance level it 
marked, but more the fact that prices had to close above this to give a new 
medium-term uptrend. This they failed to do - note though that the intraday 
highs were identical - to the cent. Then prices fell again - right back to the 
previous support level.
 There is clearly good support at about $2.02. Prices have fallen to this level 
many times, but buyers have always come in around then, raising prices again. 
Some people will try and tell you that this means nothing at all - it is mere 
happenstance. To me it is self-evident that a Close below this level has 
negative implications. It would mean that buyers have not come in where they 
had in the past, clearly signalling a change in market sentiment toward this 
stock.
 It is interesting to note the intraday support at $1.94. Again, any trading at 
prices lower than this would have negative connotations.
 I would be surprised to see ION break the $2.02 support level. If it did 
though, I would not go near this stock, no matter what its fundamentals. If you 
want to see what typically happens when stocks fall below previously well 
supported levels, take a look at the charts of TRH and TWR.
             Regards,
                     Phaedrus.

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