Forum Archive Index - February 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

Charles asked about SKY the other day.

 

From the chart perspective SKY has reached an interesting point.

 

SKY has traded for some years in clearly defined channels. At the moment the SKY is trading at the upper trendline.of this channel

 

SKY can go two ways (like a bob each way) from here -

 

Firstly - continue to trade in its present channel. This would show the price drifting down to 330 odd before heading back to 400 over the next 4-6 months.

 

Secondly - if it breaches the current upper trendline (for a day or two) channel theory says it should continue to rise to somewhere near 450 in the next 2-3 months.

 

Past history would indicate that the first case is more likely. However with the current SKY initiatives (interactive TV getting closer etc), curreent favourable sentiment to companies like SKY,  and the recent management changes within SKY and INL (suggesting a visible News Corp involvement) there is also a compelling story to support the second case.

 

For me I purchased SKY because of what the charts were saying and with the intention of trading within the clearly defined channel that had been created. (the first time I had seen a decent one in NZ).

 

So sticking to the plan I'll take some profits today - but the second case looks promising so left some in. If that plan doesn't work then more to be made later on when the price drifts down to 330 odd.

 

Cheers

 

Peter