11/22/99 Pairgain
Technologies
Points to watch:
Pairgain is breaking out to the
upside. A long term buy signal was given last week when the stock
broke above resistance at 16.25 (the 38% retracement of PAIR's February
1997 to October 1998 decline), a level which had stopped all previous
rally attempts since April 1998.
Technical indicators remain strong and
have confirmed the stock's breakout. Weekly MACD gave a buy signal
in April, and weekly OBV bottomed last December and has been rising all
year. Daily OBV, RSI, and Stochastics have been rising sharply since
August.
The next overhead resistance levels for
the stock are at 20.25 and 23. Support is at 16.25 and 14.75.
