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From: | Phaedrus <Phaedrus@techemail.com> |
Date: | Tue, 4 Dec 2001 23:10:49 -0800 (PST) |
(Requested by David) Viewed over about a year, FFS has been in a wide trading range (23 - 34 cents). Within this range it has been in a downtrend for the last four months. Short-term, a bullish flag has formed. A bullish flag is defined as an upward move in an almost straight line (the flagpole) followed by a short downward sloping rectangle, bounded by two parallel trendlines. The pattern is confirmed by a breakout above its upper trendline, which is thus the buy signal. This is a reliable pattern, with a failure rate of 13%, and an an average gain of 19%. Flags are a short-term pattern - formations longer than about 3 weeks have a higher failure rate. When to buy? FFS is very near to a historical support level. While it is unlikely that this level will be broken, any close below 23 cents would have negative implications. The prudent thing, therefore, is to wait, and buy on any close above the downward trendline. Very cautious investors should wait for a new uptrend before buying. Phaedrus. _____________________________________________________________ Are you a Techie? Get Your Free Tech Email Address Now! Visit http://www.TechEmail.com
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