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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Peter Singleton who wrote (4792)	7/7/1998 11:15:00 AM
From: Ron Kline	Read Replies (1) \| Respond to of 6136

The best way to describe the formation is to run you finger starting at your left elbow and trace with your finger up your arm to your shoulder, up your neck and head, down to your right shoulder and back down to your right elbow. Visualize what that would look like if that was a stock chart. That would be a clasic type of pattern of a head and shoulder because it looks just like that. Now in the real world they don't always form in such a clasic way and the shoulders are not always even which is the case with AGPH (right shoulder lower than left. Here is the correct chart to see the formation: quote.yahoo.com The neckline is the area you want to watch because that is where you see the chart is completed. Notice we never went below $27-$30 or so the the first 2 times AGPH corrected, and yesterday we broke down through that on large volume. Most people who would look at the chart would think AGPH would have support at $27, but by reading the H&S you would be suspect that it may go lower. Most H&S occur over months and not a year, but it is not out of the ordinary to see them develop over that much time. Having a stock going through a head a shoulder is tricky because the stock turns into a rollercoaster and for longterm stockholders they can be very discouraging, especially if they ride it all the way through the ups and downs and then to see it go below the neckline. Ron Read Technical Analysis of Stock Trends by Edwards and Magee for more in depth info on charts.