Forum Archive Index - December 2001

[jerrold poh <jerm@musician.org>]

> Looking at a WAM chart it appears to be quite similar to TEL.  I can't
> see how to copy from Henley (any tips would be much appreciated) but I
> wondered if our resident expert Phaedrus could provide an update.  The
> chart I am looking at shows price action reaching the intersection of
> a downward trend line which was started on 19/6, was confirmed on
> 25/7, 3/8, 6/9, and 11/12 and the recent uptrend line starting 25/10
> and confirmed 3/12 (all dates are approximates).

I know this email is directed at Phaedrus, but I wouldn't mind giving it
a shot (feel free to criticise / correct me :) ).

Just to re-iterate your point, yes, I can see the downtrend you have
"drawn" :), and for the convenience of readers, have posted it on the
board (as wam01.gif), and like you said, this chart has a strange
similarity to the telecom chart of late.  

It all looks good, but the thing that worries me though is that there
isn't much volume support for the uptrend.  If you have a look at
wam02.gif, I've got an indicator which measures accumulation /
distribution.  

This indicator goes up when there's a rise in price, and high volume
(which is good, because people are buying, and that's what's making the
price go up), and it goes down when the price rises, and there's low
volume.  (conversely, it also goes down when the price falls, with
matching high volume, and when the price falls, and matching low volume).  

If you look at the indicator, it shows that the "momentum" around the
stock isn't very high at the moment, (shown by the indicator going
nearly flat).  People are just basically "trading" the stock with each
other at whatever price.  There's no big hype to buy, or sell the stock,
and I think people are both happy to buy or sell this stock around this
price range (efficient market theory?).

Actually, I remember some talk of equivolume on this board awhile ago,
and wouldn't mind if someone posted a chart of wam in equivolume, just
to see how strong this stock is trending atm.  I'm guessing it would
make a good complement to the accumulation / distribution indicator.



Jerrold.

wam01.gif

wam02.gif

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