Forum Archive Index - March 2002

[Phaedrus <Phaedrus@techemail.com>]

Barry,
       You may be interested in a technical perspective of Metropolitan Life. 
MET has just broken through a previous resistance level of $1.35. This is 
especially significant, because it marks the start of a new medium-term uptrend 
(a higher high, after a higher low). MET is also in a short-term uptrend, and 
above its 200 day moving average, which is rising. All very positive.

 A 200 day moving average is the indicator most commomly used by long-term 
investors. Generally, they would buy when prices climbed above the moving 
average, and sell when prices fell below it. Some prefer to buy when the ma 
itself starts to rise, selling when it begins to fall. Moving averages, like 
any trend indicator, only work well when a stock is trending up or down. 
Without a trend, they give a string of conflicting, unprofitable signals. 

 MET gave me the best long-term trade I have ever had on the NZ market. I 
bought on 22/2/96 at 36 cents, and sold about two and a half years later on 
21/9/98 at $2.40. I bought on the basis of a new confirmed uptrend and a moving 
average crossover, and sold on the basis of a trendline break and a moving 
average crossover. I have not gone near MET over the last three years or more 
because it was in a medium-term downtrend.
                          Phaedrus.
 
 

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