Barbara,
Of course! The Point & Figure chart is somewhat dormant for now and since it makes no indication of time and volume concerns it could be another month before anything happens. As it stands now, we are in a column of X's which indicates an up move which initiated @ 6 1/2. Currently, a move to 10 breaks a short-term bearish resistance line which dates back to January 1997. In my mind this would definetely push the stock to 10 1/2, a completion of a Bullish Catapult formation which could take the stock to test new highs. P & F, is perhaps the purest technical log of supply and demand for a stock. Right now, it is obvious that @ 9 there is quite a bit of overhead supply...buyers who bought in at lower prices view this as their exiting point. If we break through that to 10, demand has taken over at these higher levels moving up from lower levels of 8 which we are currently experiencing. The other possible chart formation would be a Bullish Triangle which if we achieve is also very Bullish and could occur at 9. For this pattern to occur, we will first have to see a pull-back to $7 and then a subsequent reversal up and through 9. We could however see a reversal back down however, and this would complete a Bearish triangle which doesn't bode well for the stock in light of the fact that this kind of move would break a long-term Bullish support line which dates back to May 1996. I will be away in Italy for 3 weeks so I can't update until then. I hope this helps and that everything goes well.
Good Luck
GS |
