12/28/98 Pacificare Health Systems (PHSYB) Points to watch: A descending triangle is forming on PHSYB's chart with top resistance at 79.06 and bottom support (formed by the 50% retracement level) at 74.56. The bottom support is given added significance because the 55 day moving average (a Fibonacci number) is also at this level (74.58). The stock has fallen below its 21 day moving average (77.19) and is nearing its 200 day moving average (75.92) . Weekly stochastics has given a sell signal. Wait for both the stock to break below the bottom triangle support and for the MACD signal line to give a sell signal before selling, or shorting. Place a stop near 79. |
