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Technical Market Action J The thirty stocks mentioned in my special letter of Februexy 11th have, in nost instces, sho.m bettor than average action. These stocks were all selected because of their large potential llccunulation areas. While most of them have moved up from their Februnry lows, substantially higher levels are indicated in the event of an upside penetration of the lonb eighteen-nonth trading renges. I an re-listing these issues below together with their potential long term price objectives. ApproxiMate Price February 11th Recent !pproximate Potential Price Long Term Objective Addrensograph Bigelow Sanford BliSS, E. W. Borg Warner Chicago North I'/estern Colunbia Gas Doehler Jarvis Electric Power & Light Elliot Conpany Fansteel Flintkote Gulf Mobile & Ohio Hewitt-Robbins Illinois Central Industrial Rc.yon International Minerals & Cheo Kansas City Southern Mesta Machine Montgo!Jery War,d Nntional Supply New York Air Bruke Phelps Dodge Radio Corp. of America Seaboard Airline Sharon Steel Southern Pacific Square D U. S. & Foreign Wheeling Steel Youngston Sheet & Tube 29 56 24 44 15 10 30 13 15 11 31 13 2l 28 39 23 24 38 49 19 36 41 8 14 30 44 15 17 39 67 33 70 60 100 26 50 52 85 16 35 12 20 35 75 18 43 21 60 14 32 35 60 17 29 24 50 31 60 46 85 28 45 29 60 38 75 53 90 23 36 38 80 48 90 10 20 16 36 33 65 50 100 20 40 20 45 41 100 74 1/.0 Obviously, these price levels are for the longer tern and any price advances to the levels oentioned will be puncuat.ed by sizecble technical recessions along the line. As is nornal technically, the market continues to meet resistance at the 175-l176 supply area in the Dow-Jones industrial average. The cornction of the sharp ten point advance in five trading days seews to be taking the form o a consolidation rather than a decline. Continue to expect support in the 172tllt arer. followed by a continuation of the internediate upswing to the next reslstance area at 179-181. Froll that point, it is possible that a secondary correction of the fifteen-point !,dvance oi!;ht occur. This correction could retrace a third to a half of the advance and bring the averaees back to 175-172. BeliEve such a technical correction will be followed by a testing of the July high of 187.66 and a possible bull narket signal. As for the rails, would not be surprised if they penetrated the 54.17 high of .January on the next advance. The advance could carry to 57-58 followed by a technical correction back to 55-54. Believe the longer tern objective in the rail ayerage is in the 75-80 area. Continue to consider selected rails as outstandingly nttractive. EDMUND W. TABELL March 29, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials 173.65 Dow-Jones Rails 52.42 Dow-Jones 65-Stock 63.26 The opmions expressed in this leHor ere the penona' irTterprelatkln of charts by Mr. Edmund W. TabeU and are not presonted as the opinions of Shiekb & Comn't.