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12/17/98 Quaker Oats (OAT) Points to watch: Quaker Oats broke below trendline support (61.3) on 12/9/98. On Wednesday OAT fell below strong Gann support at 59.75 and Fibonacci support at 59.13. The stock closed at 58.75, the 50% retracement level of its October-November rally. Daily RSI, MACD, and OBV showed strong divergences with price during the late November peak and are in downtrends. Daily CCI has given a sell signal. Weekly MACD has diverged with price for the past year, and has given a sell signal. OAT has fallen below its 21 day moving average (62.25), its 55 day moving average (60.91), and its 100 day moving average (59.4). Aggressive traders may short below support at 58.75, conservative traders should wait for a breakout below the 200 day moving average at 57. Place a stop near resistance at 61.3. |
