Air New Zealand AIZ - October 2001


Air New Zealand AIZ - October 2001

This chart presents a simple message, stated many times on this site as part of continuing education; never buy a down trend,
especially:

  • if a stock breaks underneath major lows,
  • where the chart pattern gives a forecast of the probable next move (descending triangle in this instance),
  • when the economy is on the down side of the business decade cycle,
  • if price is below the moving average, and
  • no matter how enticing the fundamentals look.

    A down trend should be short sold. For August, our virtual email service waited patiently for a short sale possibility, emails #45 through #49. And short sell we did, on the break of the lows, the pattern forecast a move to 62 cents, where we bought back the stock for a tidy profit. Our notional portfolio has the details.

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