Re: [CANSLIM] Wedging example: CECO

From: "Dan Forant" <dforant1@nycap.rr.com>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Thu, 5 Sep 2002 10:51:04 -0400

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Also divergence?

DanF
- ----- Original Message -----
From: "Katherine Malm" <kmalm@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Thursday, September 05, 2002 10:41 AM
Subject: Re: [CANSLIM] Wedging example: CECO


> Here's a good wedging example:
> http://WallStreet-LLC.com/canslim/PHA090402.jpg
>
> ----- Original Message -----
> From: "Katherine Malm" <kmalm@earthlink.net>
> To: <canslim@lists.xmission.com>
> Sent: Thursday, September 05, 2002 9:37 AM
> Subject: Re: [CANSLIM] Wedging example: CECO
>
>
> | 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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>
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