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Biotech / Medical : Centocor ( CNTO ) -- Ignore unavailable to you. Want to Upgrade?

To: FNS who wrote (837)	11/21/1998 7:41:00 AM
From: Bwe	Read Replies (2) \| Respond to of 965

I wanted to update the board on the recent point & figure chart action for CNTO. The stock recently gave a Relative Strength Buy signal the week of 11/11 and these are long lasting signals in p&f charting (2 - 2 1/2 years on average). Let me lay out a little chart history for CNTO before I go any further. Last October/November, CNTO rose to $53 twice before having two very bearish p&f chart patterns called High Pole Tops. These HPT's led to an eventual decline down to $28 and it took another 8 months for CNTO to put in a bottom between $28 - $32. The stock had a very good run from 1/98 - 3/98 rising as high as $47 in March before turning down and bottoming out at $32 three different times in August and September. CNTO began it's new uptrend rising as high as $43 before having another HPT at $38 for the first move in October. The overall market and CNTO's sector was in much better health (and CNTO's fundamental news was continuing with lots of positive press releases) and this time, the stock dropped a bit further to $35, however, this proved to be the bottom before the recent run to $52. Where to from here? Well, the stock's RS took a hit on Friday but is still bullish, on a buy signal, and in a strong uptrend. The Bullish Support Line (BSL) which is the long term support for the stock is at $40. A secondary support line, the Bearish Support Line (bsl), is at $43. CNTO gave a p&f sell signal yesterday at $45. This sell signal will likely test the support I've just mentioned. The important moving averages are as follows: 50 day MA: $42.34 150 day MA: $38.77 200 day MA: $38.98 The main trend of CNTO remains in bullish with the short term momentum still bullish as well. The bearish price objective for this sell signal is $40 and it looks to me that the low to mid $40's presents a very attractive entry price into the stock. There's lots of support by way of trend lines and moving averages and I suspect the 50 day MA will remain unbroken. Resistance now at $50 and the stock needs to get to $53 to give another buy signal which would be a triple top buy and would further the bullish chart case for CNTO. All IMHO, of course. Best of luck to all and I'll update the p&f chart progress of CNTO in the coming weeks. Bruce