>>a test of "support" at $69 would validate what exactly?
An ascending trend channel.
If you have a ruler, and Yahoo plotted on a log chart, draw a line from the 1/2/97 bottom, up along the March, April, June, July lows, and October's intra-day panic low on 10/28. Amazingly, it's a perfectly-straight support line that corresponds exactly with all those important lows and ends in the mid-60's today.
The upper channel resistance line is a parallel line to the support line, and is drawn across the January, 1997, and September highs...and it touches today's close. It's just something I've been wondering about.
I think Cendant is still a great company with great franchises. Trouble is the institutions are very very angry, and not in a buying mood. Fidelity alone, for example, had something like 33 million shares.
They're talking about adjusting back years. I think it may rally some, but it's dead money. |
