Forum Archive Index - January 2003

[Phaedrus <Phaedrus@techemail.com>]

Peter,
      Owens had been in a downtrend for about a year - the trendline was broken 
on 9/1/03 giving an entry at 82 cents. This confirmed a moving average 
crossover buy signal from 12/12/02.
 Note the bearish "Double Top" formation marking strong resistance at $1.45. 
Note how the downtrend reversed at the same price as it did 19 months earlier. 
This marks strong Support at that level.
 It amuses me when people like Hugh and Capitalist claim that the entire 
concept of Support and Resistance is baseless. I see numerous instances of it 
every day. This chart is yet another excellent example. It would be odd if the 
market did not have a memory - after all it is composed of people who certainly 
do remember. Whatever the forces were that reversed the downtrend in May 2001, 
they are clearly still active, still exerting influence, and still kicking in 
at the same level.
 Guess who would not be at all surprised if OWN again encountered some 
resistance at $1.45!

     Regards,
                Phaedrus.

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