Re: [CANSLIM] FWHT Wedging?

From: "Pritish Shah" <pshah@lason.com>
Subject: Re: [CANSLIM] FWHT Wedging?
Date: Mon, 30 Jun 2003 13:19:59 -0400

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Jans,

One of the rules to locate the top of a stock after a breakout is to look =
at rising prices on falling volume. FWHT already broke few days back and =
ran up 20%+. There are two possibilities in my opinion

1) Give it a chance to rest and create another base
2) See if it exhausted

WON says that if a stock runs up really fast, give it a chance to rest and =
form another base (base on top of a base). However, he also says to look =
for exhaustion. One of the ways is an exhaustion gap where the stock gaps =
up on low volume -- this I do not see on FWHT.

So, potentially this stock is just resting for another move up.

FYI, more info on investors.com

http://www.investors.com/learn/B11c.asp

Regards,
Pritish

>>> Spencer48@aol.com 06/30/03 12:48PM >>>
Kelly:

     I believe Katherine (and I'm sure she'll correct me if I'm wrong) =
was=20
talking about a stock's HANDLE wedging (ie. rising higher on low volume). =
=20

     While, I suppose, a stock could wedge (and I believe triangle =
formations=20
are based on this price/volume tandem), CANSLIM is not founded on stock=20
formations that wedge, but rather stocks which form different kinds of =
bases with=20
handles.

jans

In a message dated 6/30/2003 11:32:56 AM Eastern Daylight Time,=20
kelly.short@fw.us.neoris.com writes:  << Is FWHT giving sell signals? =20
      I'm perplexed over the recent (past four days) action of FWHT.=20
Katherine Malm astutely brought a pattern to the attention of this group =
in which a=20
stock price increases while volume decreases, a pattern she called =
wedging. I=20
don't remember the technical definition...  >>

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