Talib, Quest,
For easy reference, pop over to my web site and print out the commented chart for HBAN:
207.115.42.245
HBAN has been, and still is, in an overall bullish trading channel. It consistently has been above the main Bullish Support Line (BLSL).
It was in a bearish trading trend from July '98 through Oct '98.
Note the consolidation pattern from August '97 to August '98. This happened above the BLSL and several intermediate blsl.
H1 is a horizontal band of columns at $32 that could be used for a horizontal count... but it would be used for a downside price objective because the last column was a 'sell' signal breakout in August '98. At that time, a BeaRish Resistance Line(BRRL) could be drawn, in anticipation of breaking a bullish support line.
However, at the first blsl the trend reversed, but only to turn down again and give a second sell signal in September'98. But this 'sell' signal occurred at a very significant bullish support line. In fact this intermediate bullish support line had held over and over again since August 1992. The blsl held and was tested again and held again until the end of September'98. We then see a 3 box column of 'O's hanging down below the blsl. BUT no 'sell' signal was generated, HBAN held in a price area where support had been recently seen.
An upside breakout occurs with a triple top buy signal at 28.
Now what do we do about price objectives? Well, we have the vertical PO that is generated at V1 which give you a VPO of $37. And we can take a horizontal PO at H2, which has the HPO of $46.
Yesterday and today, we have the price bouncing off of the Bullish Resistance Line (BLRL) which is at $37.
What to do? What to do?..... Well, if the price breaks through $37, on volume, then it is perfectly applicable to calculate a new VPO. (Otherwise, you could never again use the concept of a VPO after any initial VPO is broken) A second Vertical PO (V2) is taken at the next buy signal beyond the initial buy signal. V2 gives us a VPO of $45. (Note that this is pretty close to the H2 HPO of $46, and mighty close to where the R2 bullish resistance line would be for the current column if the current BLRL gets broken).
But before you get too excited about $46.... look at the current BLRL. Three times before, in this current up trend, the price has stalled at or near it. And the current column high price is right at $37. Should the BLRL hold again, then a trip to either intermediate bullish support line at S1 ($32) or S2 ($29) is possible. Remember that either of these two events would still have HBAN trading within a bullish trading 'band'.
Hope this long winded note answers your questions+.
Ben A.
ez-pnf.com |
