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Technical Market Action After epproxinute1y equalling the July closing high of 51.63, the rails net sone profit-taking on Monday and c10sec fractionally lower on the day. At Snturdays closing of 51.70, the ruil averq;e v,as at a lev,l thQt has een approsched on nunberous occasions, Ilince the Septetlber, 191,6 '-ecllne . The rc.ll average rellched a closing rally high of 51.22 in Novenber 1946, 52.67 l.n Decnber 1946, 53.42 in February 1947, 51.63 in July 1947, and 51.19 in Octoher 1947. Thus, this is the sixth occasion in the past sixteen nonths that thE' ruils hQve attenpte1 to penetrate this level. The action of indivic'.ual stocks indicQte that th;is tiI'le. the attempt may be successful. Such c.n event WOUld, be of extrelle l.!lportance technl.cally, and indicate the stp.rt of a very inportant upsving'lin the general narkct. Starting below is an a1phabeticnl review of our list of recon- nended issues. Believe these issues offer better than Ilverake chnnces of narket appreciation. –c hdans F,xpress (17 5/13) is an investnent trust issue Viith higher than o.verage leverage. The stock llo.de a double bottotl at 13 1/13 in October 1946 and in May of this year. This low was in line with the downSide objective of 13 outlined by the distributional pattern of early 1946. The stock has been bui.l'-ing up a base area in the 14-17 range, and vms recor.Jr.lended for purchase in June at 14 7/S. The base area was recently penetrated upside and the 10n,;er tern objective is 26-30. The 1946 hish Vias 24 3/4. The stock vill tlove in line with the general averages and appears to btl in a strong technical position. Alle.-,hoJw Lud1uD (31 5/8) was recoWDEOnded at 28 on Decetlber 5th as an issue tha seeed overly depressed by ta selling and could rebound quickly after the pressure was lifted. The stock closed at 31 5/13 on Monday. Would expect SODe further rally to the 35-37 resistance area. ' its approxitlate heny Pfd. donsde objective (40 l/S) at 25 1/4 This extretle1y vo1Rti1e issue reached in May. A large potential base area has been built up in the 26,44 area that would indicat an obj ecti ve well above the the 1946 high of 69 1/4, if the area is penetrated upside. Over the nearer tem, the technical pattern indicates the.t e. penetration would indicate a ,-uick rally to the 54-59 reSistance area. ferican CyanaDid (39 3/4) This issue is selling close to the years low of 313 5/8 and appears to be in an excellent position to rally sharply as the pressure of tax selling abutes. At pres.mt levels, the stock is at -ehe very strong support level of 40-313. The stock has sold hieher than the present price in every one of the past fi ve ye.rs. The 1946 high \Cas 63 3/4. Fro'1 a technical vievlpoint, the stock appears to be an attractive purchase. American Water Works & Electric (16 1/8) built up a c1.istri'buttODcU area in errly 1946 the t in ictcC' cc 'lecli!le to 11. 1 10\1 of 12 . Cos re.chc( in licy of this 'ecr. l' larGe yJotcntil br.se arEo.n has bc.cn built UP in the 12-1(, rec thG.t ,oul( inicute a lone ter. objective of 36, i.L 'he 'Ir(.e is' penctrtE;' upsi(e. There is ne,,-rcr terl resist nce in tle 24-27 ..ree. 11th ,,-t 84 1/4 Atchison, Topeb., cn( Sent Fe -long lith four other rd1 issues b(e9c2) u6.e,,-6orf tchoeD lenc;ec' on inrovco Decelber technicd ,ction of tJ1C r ilroC oup. t ,Jon.ys closir.f, of 92, the stoci, he penctrc.ted the July hieh m' the nec.rcr ter. in -icr.tion is th 104,-110 ren. T.! lon'er ter; pattern is c.lso favorble. Decenber 22, 1947 ED.urJD \.. T,.BrLL SHIELDS & COMP1,NY The opinions expressed In lhis leHer are the personal Interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shlolds & CompaOy.