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| 3/29/99 Novellus Systems (NVLS)
Points to watch: One to watch this week.
NVLS stock has been sliding since failing to break above its January highs in mid
February. Weekly MACD gave a sell signal on 2/26, and daily MACD gave a sell on 3/4.
Daily Money Flow and weekly OBV both turned down in early February. Last week
the stock fell below the 38% retracement level of its 10/98-1/99 rally, and the stock is
approaching important support levels. Support exists at 51.25, a level which
Novellus tested and held on 3/12 and 3/24. Gann support at 52.13 was tested on both
3/24 and 3/26. We would watch for a break below this support at 51-52 this week, and
sell or short on a break with a first downside target of 47.63 ( a support level which
held on 3 tests in December). The 21 day moving average, now at 57.06, provides
upside resistance and has acted as resistance on 3 occasions since Novellus broke below it
on 2/24.
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