10/11/99
Egghead.com Inc
Points to watch:
Egghead.com stock has built a solid base
over the past 2 months and appears to be ready to move higher. The
stock has formed a solid bottom, with lows in August and September.
MACD showed positive divergence during the September lows.
The
stock moved up sharply on Thursday and Friday, moving above its 55 day
moving average on Thursday, and closing Friday at 9.38, its highest close
since July 22nd. Technical indicators are positive, with stochastics
moving up out of oversold territory on Thursday, giving a buy signal, and
MACD crossing above the 0 signal line on Friday. RSI has been rising
since July, and OBV turned up sharply last week.
A
buy signal would be given on a move above Friday's intraday high of 9.75,
the 50% retracement level of its July-August decline. The stock
would next run into resistance at 11.75-11.88.
