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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: lobster who wrote (554)	2/10/1998 12:51:00 PM
From: Ms. X	Respond to of 34811

The reason we go out on a limb here is because of the RS. When a stock pulls back (admittedly we would like more in Intel) you can do a couple of things: 1) try and guess the bottom of its pullback and buy there 2) Buy at limit an area of support (hard if stock is on a high pole) 3) Buy on the reversal up from the pullback indicating an ending to the pullback. Now with version 3 if you are a trader you can set your stop at the break of the last bottom. This limits your risk. This pullback to 86 actually brought it back to the last area of resistance (86) and then it moved back up. Next area of resistance past 90 is 95. You could wait for the double top break at 91 and buy on the next pullback too. Neither strategy is wrong the key is to know the risk in your strategy and how to negotiate it. Jan P.S. I'd pass it buy the big guy but he is out of town.