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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (10876)	6/27/1998 8:31:00 PM
From: Smooth Drive	Read Replies (2) \| Respond to of 42787

Hi Les, I too follow GM and here's a Point & Figure perspective. GM is one of the P&F charts that I hand chart. It's an interesting P&F chart because of all the trend lines it affords (some charts are very boring with little opportunity for P&F criteria trend line construction). Here's a brief P&F top down look: 1. NYSE Bullish % Index is Bear Confirmed at 46 2. 10 Week MA Bullish % Index is buy at 32 3. Hilo Bullish % Index is sell at 28 4. Auto Sector Bullish % Index is Bear Confirmed at 46 5. Relative strength is on a sell signal but in column of X's. Chart Comment: GM had a classic P&F pattern called a High Pole Top (HPT) when it reached a high of 76 on 5/26 and subsequently reversed and gave up more than 50% of its column of X's gain. This is noteworthy because 80% of the time, a HPT will subsequently drop below the previous low, which in this case would be a drop to 66 (keep this very important number in mind for a minute). Currently the chart is in a column of O's (dropping) at 67, and this 3-box reversal occurred yesterday. At 67 it's trading in a 0 to 20% oversold range (as measured using a 10 week moving average and 3 standard deviations: Low-60; Middle-71 & High-83). It's found its way back to the 67 horizontal support box five times since 4/2/98. On a P&F chart, 5 horizontals are All Star support. It hit 67 on 4/2/98 (V@2,817,800), then on 4/27 (V@2,426,200), next on 5/7 (V@2,966,700) then 6/6 (V@3,105,900) and yesterday (V@2,129,900). It's ostensibly penetrated its Bullish Support Line (BSL) but needs a sell signal (a drop to 66) to change from a bullish trending channel to a bearish trending channel, and formally establish a Bearish Resistance Line (brl). At the current 67 it's also one box above a Bearish Support Line (bsl). If it does break this formidable support, it has (within last 12 months) found single horizontal support at 65, 64, 63, triple support at the 59-60 area and a major single at 56 on 1/9/98 (where the current BSL and bullish trending channel were created.) There's also trend line support at 63 and 56. Longer term support had horizontal triple at 53/54 in early 97; triple at the 46/47 level in the July-Sept period of 96 and double at 37/38 in the Oct/Jan period of 94/95 Given the above, my estimate is ............... Take care, Eric