Re: [CANSLIM] Wedging example: CECO

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Thu, 5 Sep 2002 09:37:51 -0500

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Hi Kelly,

For the most part, the action on the right side of CECO's "V" cup was
wedging, just as you noted. You had to pick the toughest chart in the
*universe* though.... Prior to that sudden V-cup, the basing action was
actually constructive. Since then, it's pretty much a nightmare of activity
and very difficult to read. The first area you marked as a pivot is iffy for
2 reasons. First, the base, having been so deep, has to be at least 6 weeks
in length to be valid. That means the earliest a valid pivot could form
would be about 8/2. You can see the action there is a little suspect,
forming a sloppy handle at best. In the handle itself, you actually want to
see volume dry up, but the problem is that this stock took a big plunge at
the start of the handle. One could certainly argue that the handle "moved
sideways" but I'd be disinclined to do so because of the wedging action to
get there.  That, combined with a very low volume breakout attempt on 8/15
just seals the deal...this stock didn't want to go *anywhere.* I'll bet the
strong action in the group has had more to do with it's ability to hang in
there than anything else. I wouldn't, as a result look at the high 8/16 as a
"pivot" but instead a pull back into the base. The only thing that can save
CECO at this point is a nice tight sideways consolidation on quiet volume.
If it can do that, then I'd say it's ready to move on. If it stays wide and
loose as it's been, then hasta la vista baby.

Katherine
- ----- Original Message -----
From: "Kelly Short" <kshort@kellyrshort.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, September 04, 2002 8:34 PM
Subject: [CANSLIM] Wedging example: CECO


| Katherine,
|
| To continue your point on wedging- would this stock be an example of
wedging
| action?
|
| http://www.kellyrshort.com/canslim/CECOwedgeexample.gif
|
| Kelly
|
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