9/23/99 Guidant Corp (GDT)
Points to watch: Guidant closed
yesterday at 51.38. The stock opened up 0.25 this morning, and is up
0.19 at 10:00 a.m.
Guidant
closed at its lowest level in over two months yesterday, just below the
7/13 low of 51.38. The stock is likely to head lower in the coming
days, with all technical indicators becoming increasingly negative: daily
RSI and Money Flow turned lower in late July and remain in steep
downtrends, and daily OBV turned down sharply this month.
Support
exists at 50.94, the 62% retracement of its 10/8/98-3/15/99 rally. A
strong sell signal would be given on a break down below the 50.94 level,
with the next downside support coming at 46.
A
failure to hold the 46 level would confirm a double top that has been
developing on the stock's weekly chart, and would be a strong long-term
sell signal.
