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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Hank who wrote (317)	3/10/1998 10:49:00 PM
From: Jim Roof	Read Replies (2) \| Respond to of 4634

<<Have you ever heard of a head and shoulder reversal?>> Absolutely. And do you know how to measure the minimum expected price movement after the breakout and the ensuing rally to the neckline or to a point that retraces 40% of the distance from the lowest part of the initial puncturing of the neckline to a line drawn tangential to both the head and right shoulder? Do you also know that head and shoulders can happen at bottoms as well? I am not touting ZONA here but it looks to me like this is at least an intermediate reversal it is on now. Hard to tell just how far it can go but my guess is about 29-30. The volume signals on the bottom pattern are not really clear enough for me personally to be a h&s bottom (the breakout was on so-so volume though it was greater than the previous 10-12 trading days if my memory of the chart is correct). I also know about broadening tops, diamond wedges (nasty devils - see WGNR), rectangular reversals, triangles of various slopes and flags and pennants and rounding bottoms (ZITL?). I know about volume/price movement confirmations and the general theory of investor psychology that attends all of these common chart phenomena. Most reversals are not forever. ZONA's top has already met it's projected minimum target (I do not have a daily chart to see clearly where all the features exist but the weekly chart here looks to show what needs to be seen). Jim