Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Upward sloping saucer???
Date: Wed, 21 May 2003 22:43:56 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0057_01C31FEA.76932930 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi Howard, To say USNA is tracing an "upward sloping saucer" would be stretching the concept of a base a bit too far. What you've got in the pattern you point out is a healthy rising stock. The idea of a base is that it represents a pause in the rising action of the stock, and with the exception of a few basing patterns such as the ascending base, for the most part, these corrections take the stock *down* in price. See a graphic representation of this process of rising/basing/breaking out at: http://www.cwhcharts.com/katherine/BasingProcess.JPG With USNA, you can see the same pattern over the last couple of years if you look at a weekly chart: http://www.cwhcharts.com/katherine/USNA052103Wkly.JPG The idea of identifying a base is that the pause in the rising action gives you a "safe" or "lower risk" entry point in the stock. Enter while it's on the rise and you're more likely to suffer through a correction or an out and out failure! Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Mhboatman@aol.com Sent: Wednesday, May 21, 2003 8:33 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Upward sloping saucer??? Is there such a thing as an upward sloping saucer? Looking at a daily DGO chart on USNA one can draw a line from the high of $7.90 on 6-22-02 to the high at $29.52 on 5-7-03. Below that line appears what would seem to be an upward sloping saucer (still visible but less apparent using a logarithmic chart). If that is a saucer, could what follows the 5-7-03 high be thought of as the beginnings of a handle? We note that the *saucer* has increasing price and volume on the right side with an improving relative strength line, characteristics typically seen in saucer patterns. We am not contemplating a purchase so much as seeking clarification of what we are seeing in this chart. Howard - ------=_NextPart_000_0057_01C31FEA.76932930 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Dus-ascii"> <META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR></HEAD> <BODY> <DIV><SPAN class=3D321573403-22052003>Hi Howard,</SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003>To say USNA is tracing an "upward = sloping=20 saucer" would be stretching the concept of a base a bit too far. What = you've got=20 in the pattern you point out is a healthy rising stock. The idea of a = base is=20 that it represents a pause in the rising action of the stock, and with = the=20 exception of a few basing patterns such as the ascending base, for the = most=20 part, these corrections take the stock *down* in price. See a graphic=20 representation of this process of rising/basing/breaking out = at:</SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003><A=20 href=3D"http://www.cwhcharts.com/katherine/BasingProcess.JPG">http://www.= cwhcharts.com/katherine/BasingProcess.JPG</A></SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003>With USNA, you can see the same = pattern over=20 the last couple of years if you look at a weekly chart:</SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003><A=20 href=3D"http://www.cwhcharts.com/katherine/USNA052103Wkly.JPG">http://www= .cwhcharts.com/katherine/USNA052103Wkly.JPG</A></SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003>The idea of identifying a base is = that the=20 pause in the rising action gives you a "safe" or "lower risk" entry = point in the=20 stock. Enter while it's on the rise and you're more likely to suffer = through a=20 correction or an out and out failure!</SPAN></DIV> <DIV><SPAN class=3D321573403-22052003></SPAN> </DIV> <DIV><SPAN class=3D321573403-22052003>Katherine</SPAN></DIV> <BLOCKQUOTE> <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20 </B>Mhboatman@aol.com<BR><B>Sent:</B> Wednesday, May 21, 2003 8:33=20 PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> = [CANSLIM]=20 Upward sloping saucer???<BR><BR></FONT></DIV><FONT = face=3Darial,helvetica><FONT=20 lang=3D0 face=3DArial size=3D2 FAMILY=3D"SANSSERIF">Is there such a = thing as an upward=20 sloping saucer?<BR><BR>Looking at a daily DGO chart on USNA one can = draw a=20 line from the high of $7.90 on 6-22-02 to the high at $29.52 on = 5-7-03. =20 Below that line appears what would seem to be an upward sloping saucer = (still=20 visible but less apparent using a logarithmic chart). If that is = a=20 saucer, could what follows the 5-7-03 high be thought of as the = beginnings of=20 a handle?<BR><BR>We note that the *saucer* has increasing price = and=20 volume on the right side with an improving relative strength line,=20 characteristics typically seen in saucer patterns. <BR><BR>We am = not=20 contemplating a purchase so much as seeking clarification of what we = are=20 seeing in this=20 chart.<BR><BR>Howard<BR><BR></BLOCKQUOTE></FONT></FONT></BODY></HTML> - ------=_NextPart_000_0057_01C31FEA.76932930-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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