Forum Archive Index - October 2002

[Phaedrus <Phaedrus@techemail.com>]

Snoopy,
       The attached chart of LPC shows some interesting features. Over the last 
4 years or so, this stock has formed a large ascending triangle formation. The 
vast majority of ascending triangles act as consolidations of the prevailing 
trend, so that if the formation is preceded by a downtrend, price breakout from 
the formation is usually in a downward direction. That is what has happened 
here. This was followed shortly after by the $1.60 support level being broken. 
The next support level is at $1.43 followed by others at $1.35, $1.20 and $1.15

 A prominent feature of this stock is the strong longterm resistance at $1.90. 
This level has not been broken in nearly 5 years. It would take some remarkably 
good news, a major change in fundamentals or a big shift in market sentiment to 
break this barrier. This stock will have hundreds of holders looking to realise 
profits (or minimise losses!) should it get back near $1.90. This is how 
support/resistance levels are maintained, and why they work.

 I would guess that you are looking at LPC as an income share - yes? Longterm, 
LPC is tracking sideways, so while there is limited downside risk, there is 
also limited upside potential. For all that, I believe your entry at $1.46 will 
be a good one for you (albeit technically premature!) Furthermore, I would not 
be at all surprised if the $1.43 support level held. I would be very surprised 
if the support at $1.35 was broken.
  
      Regards,
                 Phaedrus.

 

_____________________________________________________________
Are you a Techie? Get Your Free Tech Email Address Now! Visit 
http://www.TechEmail.com

_____________________________________________________________
Select your own custom email address for FREE! Get you@yourchoice.com w/No Ads, 
6MB, POP & more! http://www.everyone.net/selectmail?campaign=tag

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/