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| 4/9/99 Brooktrout Technology
(BRKT)
Points to watch: Brooktrout is showing signs of
breaking out to the upside. A double bottom is forming on the daily chart, with lows
around 10 in September and March. Daily MACD showed a strong divergence with price
during the second bottom in March. Yesterday the stock closed above a down trendline
at 13.25 drawn from the December swing high which had acted as resistance on
February 3rd and March 11th. The stock also closed above resistance at 13.19 (the
25% retrace of the April-September 1998 decline. RSI is in a strong uptrend.
Despite the stock's move above trendine resistance, you might want to wait on this one for
further confirmation. Overhead resistance exists at 14.06 (the 50% retrace of the
December-March decline) and at 14.17 (the 200 day moving average which acted as resistance
in mid January.). It's probably best to wait for Brookstone to clear this resistance at
14.06-14.17 before jumping in. On a move over these 2 resistance points the next
significant resistance isn't until 17-17.5.
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