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

To: Jorj X Mckie who wrote (10619)	12/2/1998 5:54:00 AM
From: Bwe	Read Replies (3) \| Respond to of 34809

JXM and Judy, Your read of DIS was right on the money and I always enjoy your p&f analysis. I wanted to add my two cents with regard to trendlines, a vertical count po, and a suggestion of a potential Bearish Signal Reversal that is shaping up in a modified fashion. By the way, my family went to see "A Bug's Life" this Saturday and we loved it. While I would call "Toy Story", the first Pixar/Disney collaboration a ** classic, "Bug's Life" is a * 1/2 family classic and a movie that has a ton of heart. This movie is going to have legs and is going to make a ton of money. The Bearish Resistance Line (BRL) for DIS is at $35. A Bullish Resistance Line (brl) is at $36. A classic Bearish Signal Reversed pattern requires 7 columns to complete and breaks the previous tops in the final column. At $29 for the first move in November, DIS had a 5 column Bearish Signal Reversed modified pattern. DIS broke the Short Term Downtrend Line (STDL) and the stock made a good move to $33. This provides another example of how revised trendlines can get you into a stock sooner and can indicate a trend change earlier than a break of the conventional trendlines. A broken brl at $31 looks like it can provide good support and I like the way Disney's chart is shaping up. The BRL has been in charge of the chart since the July, $40 top, and the BRL needs to be broken to establish a new uptrend. A buyer between $28 - $31, a range where I believe it's OK to begin or add to an existing position, would buy on the belief that the BRL is going to be taken out and a new uptrend is going to resume. AS Jori pointed out, the fundamental news from their movie division is quite bullish and could add to DIS' bottom line in a meaningful way. A High Pole would occur on a reversal to $27, and would call into question the recent bullish chart action. The more patient approach would be to wait until the BRL break to take a position in the stock. Judy, I'd be most interested in your approach to DIS from a longer term perspective. Take care, Bruce