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[Wallcrawler]

I thought I post this over in the Swings waves section....

With all the talk lately about the Housing situation I thought I would put alittle focus on one particular stock - Tolman Bros. (TOL) - (mainly because of the pattern that is not all that common - (CUP & HANDLE) When looking at these charts my mind tells me this is all too easy if this pattern does play itself out this way, which if it does would be a great learning tool for the newbies of TA stuff (or rather pattern recognition). Along with the pattern I added a few indicators that have helped me over the years stay on the right side of a stock/ETF/etc.. of which trade options.

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Chart 1 - The Daily Chart

You can see by the TREND INDICATOR (Aroon Indicator) that crossed May 11, 2005 along with the Williams %R that crossed the -50 to the upside a few days earlier (It acts like a heads up as it were) and then the MACD crossing the 0 (zero line) to the upside...all of which are indicating the Bullish Trend is in play. You will see the BEARISH TREND REVERSAL which of course you would just do the opposite of the current BULLISH TREND REVERSAL (This indicator works best with the 60 min, daily, weekly time frames)

The volume action that occured on May 26, 2005 has taken out the highest volume this stock has had till now.

Daily chart Tolman Bros. (TOL)
[img]http://quote.prophet.net/JCPrintChart?href=http://HOPE.prophet.net/TemporaryFiles/JavaCharts/62.1117509230318.print.gif[/img]

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Chart 2 - The Weekly Chart

On this chart you can see that we have been in a BULLISH TREND according to the indicators since August 2004.

The price action that happens once the TREND INDICATOR is first indicating a certain trend you will see the price action have a pause/pullback as it were, before it resumes in the indicated trend.

Weekly chart of Tolman Bros. (TOL)
[img]http://quote.prophet.net/JCPrintChart?href=http://BRAVERY.prophet.net/TemporaryFiles/JavaCharts/106.1117517613565.print.gif[/img]
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Here is my predicted or rather...Fearless Forecast...

So here's the way I see it....We should have a pullback anytime now (which would start building the handle of the cup. Look for a FIB retrace...We will see which one it finds support on, and then as it builds up supportive volume on the pullback it will head to new highs...by which time CNBC and the like will be tooting its horn and that would be our signal that this stock has hit a massive euphoric phase (bubble ready to pop)

There are a few GAPs that need to be filled yet as indicated on the chart. But if it is in the handle building phase the first GAPs would be the only ones that would get filled...I will be looking to buy on any dips that occur while the BULLISH TREND is in play...So that's the way it looks from here.

WC

[Wallcrawler]

Sorry guys!!! for some reason the Daily chart didn't show up. So here it is... Well, good thing I caught the edit in time...just looked at the original post again and the daily chart did show up... Sorry guys ...again

Edited by Wallcrawler, 31 May 2005 - 01:13 AM.