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

To: Judy who wrote (10957)	12/5/1998 6:55:00 AM
From: Bwe	Respond to of 34811

Good morning, Judy. This will update my previous posts with regard to LU. Here's a link to the last update from 12/1: Message 6623991 LU had a Quadruple top breakout buy on Friday at $92 (there was actually another top at $90, also from November, that was also cleared). This came on the heels of a modified Bear Trap that took place with a Double Bottom break instead of the necessary Triple Bottom break that is required. A Bear Trap occurs when a stock breaks below two previous bottoms by only one box, and then reverses back up immediately into an X column without dropping another box. A Bear Trap takes out stop loss orders and causes "weak hands" to sell on the apparent impending downside prospects for the stock. I mention it here because the move to $85 gave a double bottom sell signal AND broke the STUL1 from the November $79 bottom. The subsequent reversal into X's at $88 set the stage for this powerful Quad Top buy signal that took place on Friday. More impressively, LU's bullish action on Friday would be enough to add another X on the stock's RS chart. LU had a very good day yesterday. A Bullish Resistance Line (brl) should cause some difficulty at $98. Another brl awaits at $118. Support is at $88 (STUL1) and again at $86 (STUL2). A Bearish Support Line (bsl) is at $79. The sell at $85 put the price objective in an incomplete vertical count situation that will be determined ultimately by how high the current column of X's goes. The current objective is $118 and counting. Using a horizontal count, the price objective is $112 and that is a complete count. The last of the the unhappy buyers from the summer will be cleared out with a move past $97. The next overhead resistance is at $108. Have a great weekend everybody. I'm off to the Army - Navy game today and I'm really looking forward to it. "On brave old Army team......." Take care, Bruce