12/03/99 Eastman Kodak (EK),
Sears (S)
Points to watch: A
Dow component stands ready to give a signal to sell short, while a former
Dow component is close to giving a buy signal.
Eastman Kodak (61.44)- Dow
component Eastman Kodak has lost 20% of its value over the past 2 months.
The stock has now fallen to an important long term support level at
60-60.63 (the 3/11/98 low and the 4/8/99 low, respectively).
Long and short term technical indicators
have confirmed each step of the way during the recent decline.
Daily MACD gave a sell signal on October 13th, daily OBV is at a new low,
and daily RSI and stochastics both turned down in late August.
Weekly OBV and stochastics are moving lower.
A sell short signal would be given on a
break below 60, with a first downside target of 53.5--a level which marked
the 1997 low and the 1994 high. Resistance is at 65.5
Sears (34.38)- Former Dow
component Sears has formed a bottom over the past 3 months and is now
attempting to start a new leg up. The stock has outperformed the
S&P500 over the past 2 1/2 weeks.
Sears has now moved up to
important resistance at 34.63-35, a range which has provided resistance on
5 occasions over the past 3 months (9/8, 9/9, 10/4, 12/1, 12/2).
Additional resistance exists at 36.25, the uper end of the gap down formed
on September 2nd.
Technical indicators have also begun to
turn around. Daily MACD gave a buy signal on 11/26, weekly OBV, RSI,
and stochastics have turned up, and the stock's 21 day moving average has
crossed above its 55 day moving average.
A buy signal would be given if the stock
breaks above 36.25, with the stock then next running into resistance at 40
and 43. Support is at 32 and 29.5.
