Forum Archive Index - June 2001

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

Snoopy says  -

 

Actually I think Phaedrus could have drawn the trend line in several places on that graph.   He chose to draw it going through the peaks, but the same line could have been drawn at any height on that graph.

http://www.sharechat.co.nz/archives/current/msg00370.shtml

 

By definition a down trend is a series of lower highs and the trend line is drawn through the highs (peaks). The current TLS down trend is as clear as one gets, Phaedrus did not choose to put it where he did to make his story better.

 

The 3 peaks at just over 900 was also a clear sign that the market got cold feet at this stage and didn't want to value TLS any higher. No doubt there would have been profit taking at this time and probably there were more sellers thanbuyers that forced the price down. Three attempts to get over 900 and not enough buyers each time to take the plunge. The three peaks are not an illusion - they represent the interaction between the buyers and sellers at that time.

 

Gerry - are referring to the infamous Mr Li in Hong Kongand the debt ridden PCCW? That sounds like a good story.

 

Jerrold - keep looking at charts. It is amazing what they do tell some time - but don't forget the fundamentals.

Cheers

 

Peter