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Ask The Trader Monday, September 18, 2000 
Using the Relative Strength Index (RSI) The RSI is a price-following oscillator that ranges between 0 and 100. Perhaps the most common method for analyzing the RSI is through trading its ranges, 70 (topping) or below 30 (bottoming). A buy signal would occur when the RSI crosses the "30 level" on the way up, and a sell signal would be triggered when the RSI falls below the "70 level" on the way down. Another popular method of analyzing the RSI is to look for a divergence in which the market index is making a new high, but the RSI is failing to surpass its previous high. This divergence would be an indication of an impending reversal. Additionally, when the stock makes a new low but the RSI fails to follow, an impending reversal of the stock can be expected. The sensitivity of the RSI is inversely proportioned to time span; that is, the shorter the time span, the more signals that are generated. In other words, if the time span is too short, following the RSI will result in more frequent reversals. On the other hand, if the time chosen is too long, a significant price move will be necessary to generate a signal, which may produce smaller profits when compared to a shorter time span. The RSI can be another valuable tool for evaluating the strength of a stock. Remember, though, that no indicator will work 100% of the time. On to the charts!
I've held off on buying into the biotech's for months now, only to watch them keep climbing. I was wondering if the recent drop my be a good time to pick up shares cheap and was wondering if you could chart out one of the best performers, genzyme. Thanks for the help, kevin. A maker of therapeutic and diagnostic products, Genzyme General (GENZ) has transformed itself from a biotech company into a proprietary drug company thanks to its wonder. Recently, the pullback in the stock has already been followed by a sharp rebound higher, which may have already run its course. A break above resistance could trigger higher prices, while a sharp bounce from support could present an additional buying point.
I would like someone to plot out the technicals on mxim. Earnings have been good in this sector and make the stock a good play for you guys to consider. -LJ Maxim Integrated (MXIM) is a leading provider of analog and digital circuits that are used in disk drives, battery rechargers and data recorders. The stock's recent fall from has mirrored weakness in the NASDAQ Composite. However, the stock may have finally found support near two recent highs, as noted on the chart.
Good luck with your trades!
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