12/15/99 KLA Tencor (KLAC)
Points to watch:
KLAC has dropped back to an important
support zone. The stock closed Tuesday at 82.56 below the support
provided by the 11/30 low of 83.38, and just above its 55-day moving
average (82.14), and the 50% retracement level of its August-December
rally (82.1).
Technical indicators did not confirm the
stock's early December peak: both OBV and RSI showed negative divergence
with price at the top, and both indicators have remained in downtrends
since mid-November.
A sell short signal would be given if
the stock fails to hold the support at 82.1-83.38. On a break below
support, the next downside support levels are at 76.5, 73, and
65.25.
