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Now that AMAT is up about 1 point I am glad I covered yesterday for a
$25 gain. I still think AMAT is trying to go to 27 1/2. The next area of
resistance. My guess is that the other day when it opened near 26 it may
of been a test of supply. I will look to take another position based
upon what AMAT does and where NWAC ends up today and on what Greenspan
has to say.
NWAC - After looking at the chart last night I see that it is moving to
the top of the supply line.
[This is constructed by going to it's 52 week high. Draw a trend line at
this point and at the peak of the next failed rally upwards. Then extend
the trend line to the right. Next create a parallel line an place at the
lowest low between the 52 week high and the next failed rally. Extend it
to the right. This will be the bottom of the supply line. (This is
constructed according to the Wychoff Method.)]
I have the top of the supply line near 32 to 33. This is where I will
look to take up my next short position assuming that it gets there. If
it does not, then I am in at 30 1/16 with 100 shares. Currently it is
down about 1/4 point. A common pattern is to see a stock move along
either the bottom or top supply line. If at the top they can fall to the
bottom. If at the bottom and they break through then they have a
tendency to snap back to the bottom supply line.
Harley
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