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

To: Judy who wrote (9148)	10/29/1998 2:33:00 AM
From: Smooth Drive	Respond to of 34811

Hello Judy, Yes, I believe that was Preston's stock contest. I was going to just trade Dow stocks for that one. I did short it and I think I bought to cover when it gave a buy signal. Preston was off on business and I must admit I forgot about that contest. Don't know what I had at this point. In any event, here's a small bit of DD: * 67 * < Original Bearish Resistance Line 66 X 65 X X O 64 X O X O 63 X O * X O 62 X O X * X O 61 X O X * X O X X O < High Pole Top 60 O X O X * X O X O X O 59 O X O X X O X O X O X O 58 O X O X O X O X O X O O + < Bullish Support Line 57 O X O X O X O X O X O + < Double Bottom Sell Signal 56 O X O X O X O + O X + 55 O X O O X + O X + 54 O X O + O X + 53 O + O + + On this chart I'm using revised trend lines in the hopes of starting a little controversy. I'm keeping two charts of DD. One without revised trend lines and one with. The one without has a Bearish Resistance Line intact and just touching the X column at 66. It is therefore still trading below the BRL in a bearish trading channel. The chart with revised trend lines (as depicted above) had a Revised Bearish Resistance Line that formed at 63, was taken out, and is now trading above a Bullish Support Line in a bullish trading channel. Nice accumulation and big support at 53 and 54. Short term bearish (double bottom sell signal) long term bullish (above Bullish Support Line). Notice the most recent column of X's exceeded the previous column of X's by five (only needs 3 to start a potential High Pole Formation.) When it reversed down and got to 61 it created a HPT and sure enough gave a sell signal. RS is +/-. Its bearish price objective is an incomplete 48. On a take every signal basis regardless of ---- yes, DD would now be a short with a buy to cover at 67. But, I can't imagine anyone doing that. Given a) the NYSEBP working up a lather and the chemical sector in bull alert, b) the stock trading above and just nudging the BSL, and c) all the past and current resistance in this area, I think one would be betting against too much to short here. (A buy stop order in the 60ish area with a stop around 56 would be worth considering however. But of course I like electric shock.) Take care, Eric