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Technology Stocks : Apple Computer (AAPL): Analysis and Forecasting -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (349)	7/29/1998 11:08:00 PM
From: Sam Scrutchins	Read Replies (1) \| Respond to of 692

I do think there's a good chance that today could mark the beginning of a breakout from a classical "flag". Jon, Agreed, but it looks more like a 'classical' pennant to me. Nevertheless, confirmed by Williams%R on the daily: bigcharts.com Good hunting, Sam

To: Jon Tara who wrote (349)	7/30/1998 8:45:00 AM
From: iGregor	Respond to of 692

Hi Jon. Sorry, but I'd like to take issue with a portion of your post. Specifically your statement: >>You're looking for support in the wrong places, though - at least in the traditional view of support and resistance. You should be looking at support at TOPS, not BOTTOMS.<< In my experience, support is the price level from which investors generally expect prices to move higher. Resistance is the level from which the investors generally expect prices to move lower. Since it's not generally expected that prices will move higher from TOPS...that's why they are called tops (no?)...it is not conventional to look for support levels at tops. Rather, as mentioned in my earlier post, one way of assessing levels of support is to look for consistencies in the price levels where price has recently retreated (of course there are other ways). If you find a recent history of prices which retreat to "X" and repeatedly rebound from there, then it's arguable that you "might" expect them to rebound (receive support) from that level again in the future. Now, that's not to say that support (resistance) >>once conquered<< doesn't often become resistance (support) as you mentioned. But, in this case it is not advisable to simply assume that previous local tops will necessarily provide support in future declines. Instead, watch as prices, once having broken through resistance (recent tops), recede to that level (former tops) again AND then rebound upwards from it...thereby establishing it as a NEW support level. Without the rebound, there is no confirmation of support (aka bottom). For sure this isn't a perfected science, by any means, though, and there's room for myriad interpretations. This just happens to be mine. Hope you find it to be of some benefit. East