STOCK GOODIES PLAYS OF THE WEEK

[BoomPickens]

Where does this overhead supply come from? Demand was obviously increasing around 18 from Oct-98 to Mar-99 (green oval). Therefore, there were a lot of bullish buyers of the stock around 18. When the price declined below 18 and fell to around 14, many of these (now unhappy) bulls were probably still holding the stock. This left a supply overhang (commonly known as resistance) around 18. When the stock rebounded to 18, many of the green-oval-bulls probably took the opportunity to sell and "escape" with little to no loss. When this supply was exhausted, the demand was able to overpower supply and advance above resistance at 18.