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Subject: Re: [CANSLIM] WES - What does a "U" shape, 1-day chart mean
Date: Fri, 1 Aug 2003 12:52:36 -0700
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This is a multi-part message in MIME format. - ------=_NextPart_000_006C_01C3582B.C8C2BF30 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Kelly, I seldom look at charts with time periods less than 60 minutes, and = seldom trade intraday unless I get very lucky or very unlucky. Looking = at WES from a daily and 60 minute viewpoint, however, the chart still = looks intact (although not without some strong warning signs). The daily chart over the past 8 trading sessions has shown little = except hesitation in the shape of its candles: if today ends up in a = doji, as seems likely, it's 5 dojis in a row. Maybe it's ripe for a = correction that will violate its trendline; it's right on it now, if I'm = looking at the chart correctly. Volume has been tailing off for the = same 8 trading days; you have to look at this as a strong hint that = buyers are not showing up. Finally, today's candle, if it holds, is a = hanging man; a lower open on Monday would be a strong sell. If you're more long term in your outlook (unlikely, since you attached a = 15 minute chart) then you might wait to see if the 20 EMA provides = support here. On the 60 minute chart, all I see is a selloff in the morning and a = comeback to the open. One difficulty with commenting on charts is the commentator seldom knows = what timeframes and goals the audience has. One person might be = satisfied with an 8% swing profit over 5 days and another with 2% before = the market closes. DMC ----- Original Message -----=20 From: Kelly Short=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 01, 2003 12:17 PM Subject: [CANSLIM] WES - What does a "U" shape, 1-day chart mean All, I am presently in WES and am somewhat confounded by today's chart = action. The chart has literally made a perfect "U" (see attached). What = does this mean? I've been watching WES closely the past few days as the = action seems weird (that's a technical term by the way). It appears to = be basing after breaking out 7/11/03, but 7/30 and 7/31 logged what = appeared to be possible churning days. Now, today, we experience this = "U" shape with a large daily delta. My only thought is that it found = resistance at $32.60. Any thoughts you might have regarding the = translation of this "U" shape to supply and demand would be greatly = appreciated! Thanks, Kelly - ------=_NextPart_000_006C_01C3582B.C8C2BF30 Content-Type: text/html; charset="iso-8859-1" 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=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2719.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial size=3D2>Kelly,</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>I seldom look at charts with time = periods less than=20 60 minutes, and seldom trade intraday unless I get very lucky or very=20 unlucky. Looking at WES from a daily and 60 minute viewpoint, = however, the=20 chart still looks intact (although not without some strong warning=20 signs).</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2> The daily chart over the past 8 = trading=20 sessions has shown little except hesitation in the shape of its candles: = if=20 today ends up in a doji, as seems likely, it's 5 dojis in a row. = Maybe=20 it's ripe for a correction that will violate its trendline; it's right = on it=20 now, if I'm looking at the chart correctly. Volume has been = tailing off=20 for the same 8 trading days; you have to look at this as a strong hint = that=20 buyers are not showing up. Finally, today's candle, if it holds, = is a=20 hanging man; a lower open on Monday would be a strong sell.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>If you're more long term in your = outlook (unlikely,=20 since you attached a 15 minute chart) then you might wait to see if the = 20 EMA=20 provides support here.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>On the 60 minute chart, all I see is a = selloff in=20 the morning and a comeback to the open.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>One difficulty with commenting on = charts is the=20 commentator seldom knows what timeframes and goals the audience = has. One=20 person might be satisfied with an 8% swing profit over 5 days and = another with=20 2% before the market closes.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>DMC</FONT></DIV> <BLOCKQUOTE dir=3Dltr=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dkelly.short@fw.us.neoris.com=20 href=3D"mailto:kelly.short@fw.us.neoris.com">Kelly Short</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, August 01, 2003 = 12:17=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] WES - What = does a "U"=20 shape, 1-day chart mean</DIV> <DIV><BR></DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2>All,</FONT></SPAN></DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial size=3D2>I am = presently in=20 WES and am somewhat confounded by today's chart action. The chart has=20 literally made a perfect "U" (see attached). What does this mean? I've = been=20 watching WES closely the past few days as the action seems weird = (that's a=20 technical term by the way). It appears to be basing after breaking out = 7/11/03, but 7/30 and 7/31 logged what appeared to be possible = churning days.=20 Now, today, we experience this "U" shape with a large daily delta. My = only=20 thought is that it found resistance at $32.60. Any thoughts you might = have=20 regarding the translation of this "U" shape to supply and demand would = be=20 greatly appreciated!</FONT></SPAN></DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2>Thanks,</FONT></SPAN></DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial=20 size=3D2>Kelly</FONT></SPAN></DIV> <DIV><SPAN class=3D846081019-01082003><FONT face=3DArial = color=3D#0000ff=20 size=3D2></FONT></SPAN> </DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_006C_01C3582B.C8C2BF30-- - - - -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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