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Strategies & Market Trends : Charts on Near Term Uotrends -- Ignore unavailable to you. Want to Upgrade?

To: Chisy who wrote (84)	12/8/1999 12:01:00 AM
From: Jibacoa	Respond to of 1404

Chisy: VLNC: It has being doing well and remains on a strong UPTREND. <<< I thought we were in the clear>>> Whenever a stock has been trading for several years, one way to look for possible "resistance" points is to look its performance in the past. The previous "lows" become resistance points when approached anew. The easiest way to look is to make a print-out of the chart. I use IQ charts real time and you can get charts on one minute to a monthly format. I also look at Standard & Poors Current Market Perspectives. They have maintained Valence in their group of charts for many years. If you trace a line from previous tops and projected to present time, the point of intersection of that line will be 99% of the time a major resistance point. I have used that method over the years in stock as well as on commodity charts with good results. For instance if you look at the chart on VCI ( Valassis Communications, which by the way has been one that I have had a long term position for years. They are the ones that place all those advertisemments you get with your Sunday paper) I took that as an exaple, because they are close to VLNC in CMPs. You could use the UCU chart on the same page as well. If you trace a line from the tops on the VCI chart,going back from 1996, you will see that when the stock dropped from the 28 level (adjusted for the 3x2 split) and came down to 20,when it was able to go through that previous H (which was a resistance point and it made it bounce back to 20 again on the first trial) but when it finally went through and it seemed it was "on the clear" because it was "an all times H", when it reached the "point of intersection" (on the line you traced) in January 1999 at the 37 level it was brought back to the 30. It happened again in May when it hit that line again when they announced the 3x2 split. On the UCU chart you can do the same thing if you trace a line starting at the L in March at 17 and going through the Hs in June and August, you will see that when the price finally went through the resistance at 20 in October, it kept going until it hit the intersection of the line at 26 in December. Well this has gotten much longer than what I intended, and probably will be difficult to understand unless you are looking at the actual charts. You will be placed on the guest list for the BIG PARTY at the JIBACOA HOTEL, per your request. Good luck to you. Bernard