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Technical Market Action Qnion Bag & Paper was originally recommended for purchase at 28 5/8 in our letter of November 1st. ' Thursdays close was 34. Union Bag recently penetrated the February high and indicates an intermediate term objective of above 50. Earnings for first six months of 1947 were 4.52 a share. The stock appears attractive at current levels. U, S. &Foreign Securitie was originally recommended for purChase in the 16-18 buying range in our letter of September 12th. The October low was 15 1/2. The February high was 21 1/2 and the May low held at 15 5/8. Thursdays close was 19 3/4. The stock has built up a strong potential base area in the 16-21 range. An upside penetration would indicate a price level above the 1946 high of 32 1/2. The stock appears to be an attractive purchase around current levels. for participation in a general market rise. U. S. Pipe and Foundry was recommended for purchase in the 38-35 buying range in our letter of September 12th. The low, both in October and May was 35. Thursdays close was 41. The stock has held in the rather narrow 35-44 trading range for over ten months. An upside penetration would be distinctly encouraging from a technical viewpoint and indicate a first objective of 55 to be followed by eventually higher levels. Favor purchases at present levels. U. S. Steel was recommended for purchase in the 67-64 buying range in our letter of September 19th. The October low Was 65 1/8. The February rally carried to 79 3/8. The May low was 61 5/8. Believe Steel is building a substantial accumulation pattern in the 62-79 range. An upside penetration would indicate an eventual level above 100. Thursdays close was 72. After selling off in the early hours of Thursdays trading, the market staged a moderate rally and closed fractionally higher on the day. Believe the low volume of the past few days near the lower part of the 181-177 range indicates a completion of anticipated correction of the sharp 26 point advance from the May lows. Believe the market will resume the uptrend shortly and new highs will be witnessed in both averages. Believe that the industrials will reach 210-215. This is an upward revision of our former 196-201 objective. EDMUND W. TABELL August 14, 1947 SHIELDS & COHPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65 Stock 179.87 48.79 64.31 .r.n.. opinlOM npreaed in this l.tter ar. the personal interpretation of cherts by Mr. EclmuMi W. r.bell enG not presented ., the opinions of Shield, & Compny.