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2/9/99 Lucent Technologies (LU)
Points to watch: Lucent continues to
deteriorate technically. A double top formed in January, and the stock has fallen
below its 21 day moving average (108.6) and 55 day moving average (102.7). Daily RSI and
MACD both showed negative divergences with price during the January peak. Weekly and
daily OBV are in downtrends. Daily ADX has given a sell warning, falling from 47 to
below 40. On February 4th Lucent broke below Gann angle support at 106.3 which
had provided support on two tests in January. The stock closed Monday at 100.68,
just above Gann angle support at 98.7 on the weekly chart. A break below this
support would mark a change in trend from up to down and confirm the end of the stock's
October-January rally. Weak downside support exists at 94.7 (the 38% retracement of
the stock's October-January rally). The downside target if LU breaks below the 98.7
support is 85-87 where a minor double bottom formed in November. The 50%
retracement level at 86.9 will also provide support in this region.
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Last modified: April 02, 2001
Published By Tulips and Bears
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