Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ms. X who wrote (2802)	5/5/1998 6:04:00 AM
From: Bwe	Respond to of 34810

Hi Jan and all. I post the following analysis of Friede Goldman (FGII) for those interested in the stock and the sector. Friede Goldman gave a Relative Strength (RS) buy this past week at $41. Point & figure chartists derive RS by dividing a stock's price each week by the Dow and then chart the results on a weekly basis. RS signals last on average 2-2 1/2 years so when there's a signal one way or the other it pays to take notice. Stocks with positive RS tend to be leaders on the upside and with the Oil Service group looking more positive, FGII's stock could appreciate nicely. The stock gave a p&f buy signal at $32 and has a $45 upside price objective. There's a bullish resistance line waiting at $45 as well and that will probably cause some overhead resistance. Should the stock be able to move past that resistance line, $50 would be the next stop as there is another bullish resistance line at that price level. Technically, things are looking much better for FGII and the oil service group as well. I'll update the board on the stock's p&f chart as things progress. Bruce

To: Ms. X who wrote (2802)	5/5/1998 10:58:00 AM
From: Bwe	Read Replies (1) \| Respond to of 34810

"Bearish Signal Reversed" pattern in Chase Manhattan (CMB) on the recent p&f buy signal at $142. In his book, Tom says "We almost always play this pattern", and in the published p&f chart pattern study, the bearish signal reversed has a 92% success rate giving a 23% return in around a 2 1/2 month time frame. CMB has bullish RS with the trend up on the RS chart. Bullish Support Line at $114. Bruce

To: Ms. X who wrote (2802)	5/5/1998 3:08:00 PM
From: FishbackJ	Read Replies (1) \| Respond to of 34810

Hi Jan, all, I've just "found" this thread and I think it's just fantastic. I read Tom Dorsey's book "Point and Figure Charting" a couple of years ago, and I tell everyone I know who wants to learn about the stock market, "GET THAT BOOK!" It's so well written (and such a refreshing change from the usual fare of t/a books) that I've referred to it again and again. I wish Mr. Dorsey would write a greater-in-depth follow up for patterns that work better now, and explain why they've changed slightly over time, etc. I even wrote him a note telling him how much I liked the book, and asking him to write an options book for actually making money ! -G- He's a real pro, and seems like a real nice guy. Dick