Looksmart Limited (LKST)

[andy20020]

Hi Ollie ... you're right IMO - the first rally is normally a reaction rally (target 224 + ???) to the initial oversold dump which appears to be happening as I type (and didn't quite reach my $1.77 - 79 target for an entry), then it should dump back to around $1.47. Obviously the exact numbers vary depending on the final situation and the market ... the one to watch - IMO - is YHOO ... it seems to be the best indicator of direction for the sector ... and boy do you have to react fast when it decides to move! As I recently found out to my expense.

So your $1.50 is a lovely target to have in mind for later, but a turn at $1.82 in a months time or so would confirm a double bottom - itself a very positive situation - I suspect that's the time to be most concerned about being long or not.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=yhoo&sid=0&o_symb=yhoo&f...

The key is probably YHOO at $50 as you can see its a very very strong support level on YHOO's chart now ... so watch for their rally back to 54 odd and then take a lead from what happens next, IMO.

Regards