Forum Archive Index - August 2001

["Peter" <pmaiden@today.com.au>]

Dick - the WHS chart is very confused. It can be looked at many ways.

The longer term view over the last 2 years WHS still shows a rising 
trend - even though the trend line has been tested a few time lately. 
The next month or so will be interesting in that to maintain this 
rising trend the WHS price needs to get to 600 and above more 
consistently than it has in the past. The way it is trending my guess 
is a break out above 620 in the next few months.

Then again the six month chart has WHS in a down trend. The chart is 
showing a Descending Triangle pattern that Phaedrus showed us a while 
ago about ITC. For a description of what these look like read his 
post. http://www.sharechat.co.nz/archives/2001/07/msg00693.shtml
The difference between the ITC chart and the WHS chart is that WHS is 
at least testing the down trend line (ie trying to go higher) but has 
not managed to break through. If this pattern continues I think 
Phaedrus would say that the price would fall below 540 odd and 
continue down. 

And then some would say that WHS has been trading pretty flat for a 
year now in a general range from 540 to 620 (except for a week or so 
of irrational exuberance on somebody's part when it went to 680). 
When this sort of trading occurs over an extended period of time a 
break out, when it occurs, is often quite dramatic.

Therefore WHS is coming to an interesting point. One thing I don't 
think it will be 560 this time next year. Either we will see a 
breakout of the current pattern with a continuation of the long term 
rising trend - or we will see a break out below 540 which could go 
anywhere. 

Interesting times - todays movement (even if on lightish volume) up 
would suggest that some buying pressure could be starting to build 
up. Maybe the strong sales figures are putting more confidence back 
into this stock and the earnings announcement next month could be 
reasonably positive.

Dick - that's my view, about as confusing as the WHS chart.

Peter 



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