1/22/99 E*TRADE
GROUP (EGRP)
Points to watch: EGRP was unable to close above
the Gann 1x1 angle on its daily chart on a closing basis at its peak on January 12th. The
stock reversed, and has been in a decline since then. Daily RSI and stochastics have
given sell signals. Both daily and weekly OBV have turned down.
On Thursday on its 15-minute
intraday chart, E*Trade moved below both its 55min [note: 55min=55*15 minutes] moving
average (85.53) and its 21min moving average (77.92). The stock bounced off Gann
support at 74.43 before testing and failing to break through resistance at 81.19.
Wait for the stock to break below
support at 74.4-74.75 before shorting. Short on a break only if both momentum and MACD are
below 0 and in downtrends, and the stock is below its 21min moving average. The
downside target is the Gann 1x2 angle (59.94) on E*Trade's daily chart. Place a stop
according to your risk tolerance levels, with resistance at 81.19 being the maximum price
allowed before closing the position.
