Tabell’s Market Letter – March 04, 1955
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Jr; Walston &- Co. MEMBERS NEW YORK STOCI( EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,ldl OFFICES COAST 10 COAST BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER March 4, 1955 The near-term action of the market continues impressive. The Dow-Jones Industrials moved into new high territory at today's close of 419.68. The rails made a new high yesterday at 153.56. Still higher levels over the intermediate term would be Intermediate term objectives for the Dow-Jones averages are now in the 425-450 area for the industrials and 155-160 on the rails. Support levels are now at around 412-410 and149-l1t7. the market is subject at any time to minor cClrrections Of of aGbOou\Jt.-r9seF, — on unfavorable news. Any further advance will, of course, continue to be selective. It is interesting to note that most of the very high-grade investment stocks are already at or close to upside objectives on my technical work. It is also interesting to note that since last November Barron's low-priced stock index posted a gain of 27.5 as compared to a rise of less than 6 in the Industrial average. This is the typical pattern of a mature bull market. I would expect this type of action to continue over the next few months, with the secondary and speculative equities showing the most dynamic price action, compared to negligible rises in investment-grade securities. I have mentioned my liking for oils on several occasions. The technical patterns on most oils are quite favorable with fairly sizeable appreciation prospects over Loth the nearer and longer term and downside support not too far below present levels. The technical patterns on some favored issues are noted below; ATLANTIC REFINING-(38 5/8Y — – — .. .. The stock has formed a strong head and shoulders base at 31-25-32 wii7h a top at 36. The upside penetration indicates an eventual 59-65. Initial objective is 45. Has recently held in the 40-38 range. Upside penetration would indicate 45. A downside penetration would meet support at 36-34. .1– CITIES SERVICE (52) Has formed a strong head and shoulders base at 39-29-37 with a top of 47. The upside penetration indicates 71 followed by a possible 81. Buy on minor declines. There is support at 47. KERN COUNTY LAND (56 3/4) The upside penetration of the 38-49 base area indicates 75 followed by a possible 104. There is downside support at 49-47. MISSION CORP. (43 1/4) The upside penetration of the broad 25-36 area is very ccnstructive and 56 followed by a possible 75. There is downside support at 39-37. SINCLAIR OIL (54 718) – – – – – The head and shoulders base at 39-31-40 has been penetrated upside. The upside potential is 65 followed by 89. There is downside support at 48. UNION OIL OF CALIFORNIA (58) The upside penetration of the 36-45 base area indicates 76 followed by a longer term 95. Has recently held in the 53-59 area. An upside penetration would indicate 65. A downside penetration would meet support at 50. EDMUND vi. TABELL HAISTON & CO. -, Th m.. morand,, it not 10 be tonslnd ., .I off., 0' '01,(..1.100 01 oH,,. to buy O. ull .III, lKuflt…, From I'a 10 t,,, W.hton 1 CO. OlIy EJ.'tn.r IhufOI moly lIa.1t .In 1111 ,.,1 ,II ,ome or ..II of th,. '.(.Uflt… m.ntlon,d h.'11 Til., for.qo,nq m,.l hu b or.od bit' IIi 411 ,.'h-, of ,lIlo.m.llon 0,,1.,. It IS b,t'd IIDon 'IIIo,m'IHI bfh..d I'iSbl. but not neeenadir COlnpt.t., ,t not qu.,.ntd as aocc.,,. 0' fin, I ,nd '5 not 'nt.nded 10 lot,loie ,ndeo.nd.nt ,nqulry