Re: [CANSLIM] TALK

From: "Charles & Lois Layne" <lelayne@earthlink.net>
Subject: Re: [CANSLIM] TALK
Date: Mon, 2 Jun 2003 20:03:32 -0400

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- ----- Original Message -----
From: "Marc Deiter" <dites@yahoo.com>


> Does anyone know how long overhead resistance remains a barrier - how
> long until investor's give up hope and sell or just don't care?

I think that the conventional wisdom is that anything more than a year old
is irrelevant.

Ooops, I could be wrong.  Just looked up [overhead] supply in Pring's
TECHNICAL ANALYSIS EXPLAINED.  "he third rule for establishing the potency
of a support or resistance zone is to examine the amount of time that has
elapsed between the formation of the original congestion and the nature of
general market developments in the meantime.  A supply which is 6 months old
has greater potency than one established 10 or 20 years previously.  Even
so, it is almost uncanny how support and resistance levels repeat their
effectiveness time and time again even when separated by many years."  (p.
186)


Chuck Layne



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