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Biotech / Medical : Biotech & Pharma.T.A, -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (797)	2/12/2005 12:56:25 AM
From: Jibacoa	Read Replies (1) \| Respond to of 3722

Ray: Re:Measured or I think better to call it "expected moves".<g> First let me say that I don't consider myself "good" if that implies "better than average", but I always try to determine how far the up or down-move will go ounce the trend seems to be already started.<g> One method that has given me pretty good results over the years is just drawing a trendline, like on the example you gave of the bullish triangle, when the price breaks out to the upside I would try to keep with it "expecting" that it will hit the previous up-trend line. I like to look at the weekly charts on S&P "Current Market Perspectives" and draw "trendlines" when a stock is breaking out from a base or consolidation pattern. I used to do the same with commodities, but at my age I am not playing too much with them lately.<g> I usually pay more attention to the trendlines on the weekly charts than on a daily basis. For instance,looking at IJ's BLTI if you draw a line from the Jan.2004 double top at the 21.39 level you can see that when it closed the Jul.19 downgap on Dec.15-Dec.16 the up-move was stopped at the 12.36 level which was the point of intersection with the trendline and the same with the January rally stop at 11.19 Also if you draw a line on the daily chart starting with the first up-move on Oct.29 and follow that up-trend to the Nov.17 H at 9.37 (don't count the Nov.19 H at 9.39 which gets out of the trend and it was a down day as the stock closed that day at 8.33 after opening at 9.25 <g>)You will be able to see that when the stock breaks out of that consolidation and trades again above 9.37 it hits the up-trendline at 12.36 which is by the way,the same point as the down-trendline on the weekly chart.<g> On that basis or premise, I would expect that if the stock can break to the upside above its double top at the 12.38 level it could hit the trendline around $15 (maybe on that short squeeze.<g>) RAGL Bernard

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