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: Ben Antanaitis who wrote (4432)	7/5/1998 1:09:00 PM
From: Bwe	Respond to of 34810

I believe I've written about Miller Herman (MLHR), the office furniture company, in the past on this thread. I'm one of only a handful of people who contribute to the Motley Fool MLHR message board, and my contributions are concerned with, what else, p&f analysis of the stock. I sold the stock a couple of months ago after the stock had a HPT at $31, and the stock subsequently dropped to as low as $22, a price it had visited and had found support 3 previous times since October '97. I took another position in the stock on Wednesday of this week and my rationale is explained in the following posts. What follows are reposts, as they originally appeared, for those who might be interested in this well run company: Subject: Supply and demand... Date: Wed, Jul 1, 1998 6:37 AM From: Big BWE Message-id: <1998070110371600.GAA20172@ladder03.news.aol.com> There's an axiom that point & figure chartist's follow, and that is; "wait, don't anticipate" with regard to buying a stock before a positive chart pattern evidences itself on the hopes that it "looks" like it's going to move into that pattern. A move to $26 would put MLHR into a positive "low pole" formation that I've written about previously. Though I might miss the bottom here, I will know that a move to $26 will indicate that the forces of demand are in charge of the stock and there are safer waters ahead. A reader might ask, "why wait until $26 when you can buy it for $24 1/2?" . My reply would be that if I owned a store and had these great dresses that I believed were going to be hot sellers, if I reordered those dresses to restock my shelves before those dresses started flying out the door, I might be stuck with my original bunch of dresses and my second order of dresses. If I wait, not until all the dresses are gone, but just enough to know that there is good demand for the dresses, I'll know there is a good chance that I'm going to make a good profit for my store. A move to $26 in MLHR's stock is my signal that people are buying the dresses. Since posts on this board are so infrequent, I guess this little essay shouldn't get in anybody's way. This morning, I wrote the following analysis of where MLHR might be headed and where the stock could run into trouble: Subject: Re: Supply and demand... Date: Sun, Jul 5, 1998 12:13 PM From: Big BWE Message-id: <1998070516133000.MAA03546@ladder01.news.aol.com> At the open on July 1, MLHR's stock reacted quite favorably to their excellent earnings report. The movement to $26 moved the stock into a low pole buy formation and triggered my buy as well. The stock has subsequently given a buy signal on it's p&f chart at $30 and the price objective is $46. The movement into the low pole formation improved the odds of a buy signal considerably and the good fundamental news was the fuel for the fire. The next bump in the road on the chart is at $32. The major obstacle for the stock is to break the Bearish Resistance Line (BRL) downtrend line that's been in place since the $36 high in March. That resistance line is currently at $33. Should the stock be able to clear those technical hurdles, MLHR will be on it's way to meeting it's upside price target. The stock's relative strength, while bullish since 2/97, has also been in a downtrend since April. The RS chart is not far away from a positive change in trend either. Let's keep a close eye on how the stock trades in the coming weeks to see if the current strength the stock is displaying is indicative of a sustained upmove, or a trading move that runs out of gas. Best regards, Bruce

To: Ben Antanaitis who wrote (4432)	7/5/1998 1:44:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34810

Thanks Ben, I could not agree more with your detailed analysis... I was just trying to indicate that the pattern that Bruce had been talking about, was not that shown on the chart. All of your point are correct and well taken. Thanks Preston