Protein
Design Labs Inc (NASDAQ: PDLI)
Market Call™ for January 24, 2001
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Focus on Exit
Once you have a nice profit in a trade, the next issue is exit. Depending
on what pattern or indicator initiated the trade, the same indicator or
another indicator or pattern may help you to exit.
PDLI has continued to break through resistance levels and continued to look
strong throughout the trading day on Tuesday, moving from $57 up to about
$66. With the market looking pretty strong and PDLI following in its
footsteps, I wouldn’t recommend just selling your position in PDLI and
potentially neglecting yourself of continued profits from this position. It
is necessary at this point to continue to carefully monitor your indicators
to determine your exit point. There may be a couple of different indicators
that will tell you when this is.
Toward the end of the day on Tuesday my shorter 5 period moving average
looked like it was beginning to roll over, moving back toward the direction
of the lagging 20 period moving average. The MACD appears to be giving a
similar indication, moving toward crossing through the MACD signal line.
PDLI also seems to have some short-term support at about $64 7/8. A break
through this support level could lead to a quick, volatile drop back down.
Be sure to have your stop order in if you can’t actively monitor your
position.
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Call Information
Mark A. Seleznov is a General
Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in
Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on
the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader.
Mark is an author and recognized expert in equity Day Trading. He conducts seminars in
Equity Day Trading and offers his firm traders training and support. If his firm holds any
positions in the public companies he writes about, it will be noted at the bottom of his
article.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner
of Trend Trader,
LLC. For information on obtaining Market Calls for your web site,
newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for
all individuals. Consult your broker or other professional to determine your suitability.
This is not an offer to buy or sell securities. The advice given above is of a general
nature and should not be taken as a recommendation to buy or sell the referenced security.
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Last modified: January 25, 2001
Published By Tulips and Bears
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