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

To: Judy who wrote (19533)	5/17/1999 12:17:00 AM
From: Dennis J.	Respond to of 34808

Judy. Have studied your post to Lane re CMGI resistance points. FWIW, I looked at a 5-point box size p&f chart on the DWA cheap seats. The all-time high was printed at 330 in April, followed by a correction of 21 boxes to 225, then a reversal up to 275, then down 18 boxes to 185 which is the intermediate low so far. Since then, CMGI has moved up in two waves, breaking a DT at 265 and forming a lower high at 290, where it again reversed down. Because of the DT break, a bearish resistance line drawn from 330 is no longer shown, but some experts continue to plot it for reference. That BRL would now sit about 260, right near your upside resistance level. Trading has been contained below this BRL since the all-time high. An ominous sign (to me) is the triple bottom break which occurred at 230. Stocks usually run nicely after such a break, but not necessarily without interruption. Here CMGI only has 4 boxes (9%) below the TB at 235, which I suspect will be extended during any down market early this week. A DB break at 215 and again at 210 would seem to foretell a test of the 185-190 level. I would look to be a buyer there, or with some safety, as it reverses up again to 200-205. Dennis