11/15/99 Global Crossing Ltd
(GBLX), E-Loan Inc (EELN)
Points to watch:
Both stocks rallied on Friday and closed
near important resistance levels
Global Crossing rallied 3.69 on
Friday to close at 38.50, a weak resistance level which stopped a previous
rally attempt on October 4th, after trading as high as 38.75
intraday. The stock moved above resistance at 37.13, the 38%
retracement of the 5/13-9/7 decline. The stock must still overcome
resistance at 39.4 (the 200 day moving average) and 39.56 (the July 1st
intraday low) before it can make a run at higher prices. Long term
technical indicators are positive: weekly MACD gave a buy signal in early
October, weekly OBV, RSI, and stochastics are all rising. A buy
signal would be given on a break above 39.56, with the first targets
resistance at 44 and then 48.25. Support is at 36.4, 34.3, and 32.5.
E-Loan closed up 1.06 at 24.5 on
Friday and traded as high as 24.75 during the day. Resistance is at
25, a level which acted as resistance on 10/4,10/5 and 11/9, and acted as
support on 9/28. Daily stochastics and RSI are rising. We
would wait for the stock to move above both resistance at 25 and its 55
day moving average at 25.5 before buying. After giving a buy signal, the
stock would next run into resistance at 27.88 and then 31. Strong
support is at 21.75-22.5.
