The Motley Fool Discussion Boards
Stocks R / Radiant Systems, Inc.
|Subject: RADS took out gaps||Date: 4/4/2000 9:16 PM|
|Author: icepal93||Number: 55 of 58|
Technical investing (charts and graphs) has its limitations. It's particularly limited in long-term predictions. However, it can be useful when the trading activity is like it was today (read panic). I found it extraordinary how RADS hit $25 so quickly in the day and then just remained there until it rallied back to $39 at the close. Why? Because when I looked at RADS the other day and asked myself how low I thought RADS could go in a market like that of today I said $25. The reason was that it closed two significant gaps from this year on the way there.
What I'm saying is not that this always happen but I think that it's that kind of market right now and when people follow this kind of analysis - they simply pick specific levels to buy at. I did. I found it very helpful to look at such support levels in several other stocks as well.
I do see one more gap in the high teens but I don't think we will get there. Of course anything is possible but I find RADS simply too cheap there. The company has grown a lot from last year. But then again, I'd appreciate such a buying opportunity again. Keep adding to your long RADS at these levels!
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