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

To: FishbackJ who wrote (7524)	9/22/1998 11:09:00 AM
From: Bwe	Read Replies (2) \| Respond to of 34817

I just completed a p&f analysis of HBOC and I repost it here for those who might be interested: HBOC is bumping up against it's Bearish Resistance Line (BRL) which is at $30. I wrote about the importance of this downtrend line and how it forms the upper end of the stock's current trading range in my 9/2 post (Re: P&F update). It is very important that the stock break through this trend line to break the downtrend begun in July at $35 in order to establish a new uptrend. Let me back up a bit and describe HBOC's recent chart action. The stock was able to hold at the Bearish Support Line (bsl) at $21. The chart then reversed up into a column of X's (rising prices) and moved into a bullish "low pole" formation at $26 (Low Pole formations). This is a bottom fishing pattern and suggests a favorable shift to demand for the stock. The odds have greatly increased that the stock will move above a previous top and give a p&f buy signal. The BRL is the primary obstacle that stands in the way and HBOC needs to move to $31 to give a double top buy signal. A move to $31 would also break the BRL and a move to $32 would move the stock above another July top where supply once again came into the shares. To be considered a valid break, a move through a trend line needs to be accompanied by a buy signal, and $31 would do the trick for HBOC. HBOC's industry group, the Computer sector reversed up to Bull Alert status 2 weeks ago and currently stands at 18%. To summarize, a move to $31-32 would do HBOC's p&f chart a world of good and would establish a new uptrend for the stock. Take care, Bruce