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Ton,
Based on the H and S pattern, I calculated that LU has a target
price of $36.00 also but I am a bit skeptical, that's why I was
hesitant to put a price target.
>Do candlesticks have a way to measure/set targets?
Candlesticks don't seem to have a way to set targets. It's strength
lies in pattern recognition or pattern warnings such as morning
star reversals, evening star reversals, hammer, spinning tops, etc.
The beauty of candlesticks comes out when it is used in conjunction
with western charting analysis techniques. A hammer forming on a
support line or on a 50 day EMA has more significance than one forming
somewhere else.
With regards to the market, could it be that the DOW is currently
completing a head and shoulder pattern with the current sideways
movement between 8200-7400 being the right shoulder? Chart attached
below. If so, neckline is at 7400 and if we break that, target level
would be around 7400-(9400-7400) = 5400. Interestingly, an article
from Fortune Magazine dated Sept. 28, '98 said that if the market
would return to it's historical median P/E, it would have to fall to
around 5500. 5500 is also where some kind of significant support is
located. Anyway, just some food for thought, this analysis could
be wrong.
Fundamentally, this market needs a correction, it is just way too
overvalued. The first two quarters has seen companies' average
earnings growth around 4% annualized with stocks P/E in the
stratosphere area, example would be Coke(40 P/E) and Gillette(30 P/E).
There's just no compelling reason for the market to go up some more.
Read that from Fortune. They could be wrong also.
Anyway, happy weekend to all.
Regards,
Steve Gochuico
------------------you wrote------------------
Subject:
Re: Interesting Charts
Date:
Fri, 2 Oct 1998 23:21:31 +0100
From:
"A.J. Maas" <anthmaas@xxxxxx>
Nice charts. Highly educative and "yep, both are downers".
On the LU the EMA50(Direction-indicator) is pointing Down.
On the LU there is also a "Descending Triangle In A Downtrend(=bearish)".
On the CPQ the EMA50(Direction-indicator) is trending Down, pointing Sideways.
On the CPQ there is also a "Symetrical Triangle In A Downtrend(=bearish)".
On the CPQ there is also an "Irregular H+Ss Bearish Reversal
Pattern(=bearish)"
LU
DT Hight=12(83-71) , DT Fallout Target=59(71-12)
H+Ss Hight=36(108-72) , H+Ss Fallout Target=36(72-36)
CPQ
Rising Wedge
RW Hight=5.50(32.50-27) , RW Fallout Target=26(31.50-5.50)
ST Hight=10.50(37.50-27) , ST Fallout Target=16.50(27-10.50)
H+Ss Hight=Under Construction/mom.est. 10(38.50-28.50) , H+Ss Fallout
Target=18.50(28.50-10)
Keep on postin', informing and educating.
Do candlesticks have a way to measure/set targets?
Regards,
Ton Maas
Ms-IRB@xxxxxxxxx
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