11/29/99 IT
Group (ITX), Insurance Auto Auctions (IAAI)
Points to watch:
Two to watch this week. One long,
one short.
IT Group, 9.63- ITX has built a
solid base and appears ready to move higher. The stock closed above
its 55-day moving average on Friday for the first time since mid-July.
Intraday, the stock approached resistance at 10, a level which stopped
rally attempts on November 1st and during last December, and acted as
support during July 1998. Additional resistance is at 10.5, a level
which acted as support in May & June of 1998, and provided resistance
in October 1998. Weekly stochastics and OBV have turned up, daily
stochastics and MACD are moving higher.
A buy signal would be given on a
break above 10.5, with the next resistance coming at 12.31 (the 50%
retracement of this year's May-October decline), and 13.5. SEE CHART
BELOW
Insurance Auto Auctions, 14.63-
IAAI has been declining since August and is now sitting just above
important support at 13.75-14, a level which provided support in June and
September. The stock closed below its 200 day moving average last
Wednesday for the first time since March. Long and short term technical
indicators remain negative: daily and weekly MACD, RSI, and stochastics
are declining.
A sell short signal would be given on a
break below 13.75, with downside targets of 11.8 and 10. SEE
CHART BELOW
