01/10/00 Rhythms NetConnections Inc (RTHM)
Points to watch: RTHM
has under performed the S&P 500 since late November and looks ready to
test important support at 26-26.5, a range which stopped declines on
10/25/99, 11/2/99, and 12/27/99.
The
stock failed to participate in Friday's record NASDAQ rally, falling 0.57
on the day to close at 27.81 after trading as low as 26.88 intraday.
Technical
indicators remain strongly negative. Daily MACD gave a sell signal
on December 16th, OBV has been falling since mid-November, and both daily
RSI and stochastics are falling.
A
sell, or sell short signal would be given if the stock fails to hold the
October 25th low of 26.06. After a break, downside support would be
at 23.2, 21.7, and 20. The 21-day moving average (now at 31) has
provided resistance on 3 occasions over the past 2 months.
