Big E...fine post as usual. Your study of the Dow stocks is welcome confirmation of the results I've found on my own charts. With regard to BEN, the penetration of the RBRL led to a nice gain, however, this is where the "test of time" element must come into play. Otherwise, any time you had a simple bullish signal with a rising bottom, a stock would take out a RBRL. In BEN's case, the new RBRL held sway over the short term move that already occurred. Because of it's oh so quick formation and the subsequent upside break, it's validity as an indicator of a long term change in trend is somewhat suspect. BEN ran into a Bullish Resistance Line (brl) at $37, and the brl, which is now at $39, provides the upper end of this mini uptrend within the overall context of a downtrend as marked by the "official" BRL at $43. The new BSL is at $29, and you're right in pointing out that the new BSL will likely be support should a HPT form. So Al, if you're reading this, $29 might also be a good place to initiate a position.
Take care, Big E. I really enjoy our discussions.
Your pal,
Bruce |
