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Strategies & Market Trends : Point and Figure Charting
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To: American Spirit who wrote (20952)6/9/1999 11:14:00 AM
From: Ms. X  Read Replies (3) of 34811
 
WIND:
To those that have been discussing the stock I thought it a good time
to put up the chart so you can see what is really happening.

Remember, the RS is in O's so that tells us that it is under
performing the market. Also, its RS in its own sector reversed down
suggesting it is under performing the other stocks in its own sector.
In other words, it may be one of the weakest stocks in the Software sector.

This is something to seriously keep in mind if you own or are thinking
of owning the stock. You have two things stacked against you in the
RS department alone. The third thing stacked against you is that it is
below the bearish resistance line.
I'll illustrate.

23 * <--This is the BRL coming down.
22 X
21 X O X <--Lower top following the BRL.
20 X --X O X O --------------
19.5 X O X O X O
19.0 X O X O X 6 X <--Recent rally.
18.5 X O O O <--Triple bottom break.
18.0 X -- O X ------------
17.5 X O X
17.0 X --------O ----------
16.5 X <--A move here would be the second sell signal.

What we see is the stock following along the BRL which creates lower
tops and lower bottoms. This is an example of supply taking control.
The recent rally may seem nice but it hasn't reached the last top of
a rally which was 21 (marked as the lower top). If the stock cannot
create a buy signal with this rally supply has definitely taken over.
With the triple bottom break it is most likely that the stock will
reverse down again and perhaps continue to make lower tops and bottoms.

If you own the stock I'd consider hedging. If you have profits don't
let them slip away. If thinking of owning, wait to see if a buy signal
happens. Today's action did nothing on the chart. A move to 16.5
confirms again the negative trend and would be the second sell signal.

It would take a move to 22 to reverse the chart to a buy signal.

Be careful with this one.
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