9/15/99 Catalina Marketing
Points to watch: The stock
peaked in late July at 108.5, and has been steadily declining since then,
with its losses accelerating over the past week. Catalina dropped below
its 200 day moving average on September 9th, and the stock closed
yesterday at 76.19 after hitting an intraday low of 73.75, just above the
support formed on 3/23 at 72.81. Technical indicators continue to
weaken, with both daily and weekly RSI hitting new lows yesterday.
Weekly OBV has been in a steep decline since mid July, and daily MACD
remains on its August 6th sell signal. Weekly stochastics, which had
spent the better part of this year in overbought territory, gave a sell
signal last week when it fell below 70. Catalina is likely to retest
support in the coming days, and a strong sell signal would be given on a
break of the support at 72.81, with the next downside support levels
coming at 69.38-70.25, and then 60.75.