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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (5934)	12/23/1997 11:04:00 AM
From: ftth	Respond to of 95453

Hi Glen, regarding the post from Options Jerry: <<Is the market gearing towards a breakout in oil drilling/services? Cliff's Drilling (CDG) DATE OPEN HIGH LOW CLOSE VOLUME --------------------------------------------------------------- 12/18/97 52.312 53.687 50.000 50.062 211,300 12/19/97 48.125 49.875 47.000 49.562 299,900 CDG with an increase in volume yet not increase in price from the close of Thursday, might be signifying that another breakout is imminent. >> ------------------- That's an interesting (i.e. wishful) twist he puts on a textbook distribution. As always, no signal is 100% accurate, but volume increases without further price progress generally signify distribution. Although I don't agree with his near-term take, this pattern may be a good sign in that it can indicate a short-term equilibrium level where a base forms out. I don't, however, expect a straight sideways base to form simply because these puppies don't go straight sideways for more than a few days. I'd call a 15-20% trading range a constructive consolidation, although tighter would be less risky in calling a breakout. Multiple tests and holds of the range limits would also help. dh