Forum Archive Index - August 2001

[Phaedrus <Phaedrus@techemail.com>]

Pedro,
       As you say, WHS is in a Descending Triangle formation (see chart below). 
This pattern indicates that sellers are more agressive than buyers, and, as 
Murphy states, is usually resolved to the downside. A decisive Close below the 
support level of $5.30 would confirm this as a "Descending Triangle as a Top" 
formation, and would signal a major trend reversal. 
  From my perspective, this is largely academic. (I sold at the Trendline 
Break). There is certainly nothing that would entice me back in at the moment, 
and I note fairly consistent resistance at $6.25 that would need to be overcome 
even if the breakout was atypically to the upside.
  Peter is of course quite right when he says the long-term trend is still up. 
It is a question of whether you wish to grit your teeth and hang on, riding out 
the corrections, or sell and perhaps buy in again later. The price has now 
fallen 10% since the trendline break, and is down 18% from the peak. This is 
all profit given back to the market by holding on.
     Regards,
              Phaedrus.

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