GPS broke out its support level $14 on Feb 28 with a high volume.  Although its Q4 earnings met the street expectation, it said its spring season was off to an unexpectedly slow start.  The fundamentals of GAP have changed.  $14 has become a short term resistant point.  

Sniper's 1 month target:  $12.25

Mar 9, 2k3



What  is  Technical  Analysis  in  Sniper's  Eye ??

Technical analysis is a piece of ART of  statistics and psychology. Many people believe that it is very useful while many do not. Whether it is useful depends on how you use it. Technical analysis is not 100% accurate, it cannot get you rich overnight. Let me put it this way, no one single analysis is 100% accurate, but if you use it correctly, it will increase your chance of winning.


When  to  use  technical  analysis ??

First of all, we have to understand what technical analysis is. Technical analysis is a system to predict the movement of a stock using historical data. It works well when there are no new fundamental changes on the stock or in the market. In this case, the stock price will be purely driven by investors' emotion. Technical analysis works only when the fundamentals of the company remain the same.  If there is going to be an event that maybe out of investors' expectation on the stock or in the market, you should not use technical analysis. For example, if a company is going to release the earning report soon, you should not use technical analysis. If the report is out of the street's expectation, investors will change their views on the stock. In this case, the fundamentals will change too. The technical analysis based on all historical data prior to the release will no longer work. On the other hand, if the report is in line with the street¡¦s expectation, the technical analysis will still be valid.