Andy, so far this advance in LGND has been very orderly.
After the all-time high in 5-96, at 19 3/4, there was a decline
to 16 1/2, then a recovery rally to 17 1/2 on 6-10-96. Since
we cleared this peak, at 17 3/4, we now need a pull-back
to remain orderly. The 20-day MA is at 16 today. That
could be a short-term trader buy point. With so much
extraneous news in the air, who knows. 16 has the added
favor of that 5-day flat while 3M shares went to some
presumably STRONG hands. If 15 3/4-16 doesn't hold,
then we get to correct the entire Aug-Sep rally from 11 5/8.
50% retracement would be at 14 5/8. The 2nd rally took
off from 14 1/4. The 50-day MA is at 14, and rising. It will
be at 14 1/4 next Wed, 10-1-97. A quick pull-back to
14 1/4 would create doubt and discouragement, plus
bring a fast recovery rally. The important thing about
the 17 3/4 high is that it opens up the stock to the old
high at 19 3/4. So whenever the next rally gets going,
it won't 'have to' stop at 17 1/2 for a profit-taking pull-back.
I would have been concerned if LGND had closed down
on the day, Thurs 9-25-97. The fact that it held a small
up-gap is positive. Tested & held 16 today. Good luck. |
