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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude
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To: Tim Oliver who wrote (6787)11/1/1997 9:32:00 PM
From: Doug R  Read Replies (2) of 79281
 
Tim,

I'm just getting to some TA requests and have LABZ on my list. The first thing you should do on a chart for LABZ is draw the support line that was created by the lows on 9/11, 10/9, 10/13 and 10/17. You can see how that line is now resistance. The price also exceeded the IL 3 weeks ago (but has since gone back under it) and that line intersected the above described line on Friday. Stocks typically react with a sizable short-term move upon hitting intersections. The direction is usually dictated by whether the stock is above or below the intersection. There is a short-term inverted head and shoulder being formed so I would expect the reaction to the intersection will cause the stock to form the right shoulder or a double head followed by a right shoulder in this pattern. That will give the IL time to move up out of the way for a breakout of the IH&S to result in a nice advance.

As for the HTF, it isn't quite a double preceding the current base and the market made a mess of the tight part but there should still be a short-term (probably within 1 month) move to 8 1/8 upon a break over 5 1/8. The formation of the right shoulder will be a good opportunity to accumulate at about 4 1/2 or 4 3/4 but keep in mind that the trend intersection could cause a pullback to 4 5/16.

The technicals show support of the outlook for the chart.

Doug R
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