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Technical Market Action Continuing our alphabetical review of recommended issues brings us to American Metal Co. which was recommended in our letter of September 9th for purchase in the 26-23 area. This zone was reached in the October decline with a low of 23 3/8. The stock rallied to reach a high of 32 in the February rally. The May decline carried back to 25 3/4. Mondaya close was 29 1/8. A sizeable base pattern has been built up in the 24-32 area. The upside penetration of this area would indicate an eventual price objective above the 1946 high of 43 5/8. Purchase is recommended during periods of market weakness. American Power & Light was recommended for purchase, on soft spots, in our letter of April 30th. The closing price on that date was 12 5/8. The May decline carried the issue down to 9 1/8 and it has slowly recovered to 12. Mondays close was 11 7/8. While the May low \olas below the October low of 10 1/8, the stock appears to have built up an irregular base pattern. The validity of the pattern would be confirmed by a penetration of the 1947 high of 16 3/4. In that event a level above the 1946 high of 22 1/2 would be indicated. Would add to committments on minor weakness. Atlas CO!E. was recommended in our letter of June 11th at 23 1/2. This special situation investment trust closed at 26 1/8 on Monday, a new high for the year. The warrants, listed on the N. Y. Curb also, reached a new high at 6 1/4. Ability of Atlas to successfully penetrate the up- side of the long 23-25 base area is extremely constructive marketwise and indi- cates the possibility, technically, of an ultimate price objective of around the 40 level. Obviously this will take time. The 1946 highs of the common and warrants were 34 318 an 13. Add to committments on botk issues on minor price weakness. ' Barnsdall Oil was recommended in our letter of September 9th in the 21-19 range. The low was 20 3/4. A large base pattern was subsequenly formed in the 25-21 area. This base pattern was penetrated on the upside recently and the ultimate indication is the 41-45 area. Barnsdall made a new high on Monday at 28 3/8 and closed at 28 1/8. Add to committments during periods of technical correction. The market reached new high territory for the move on Monday, At the intra-day high of 182.61 for the industrials, the average was only 2.35 below the February high of 184.96. The rails, at 48.70, were 4.95 below the comparable high of 53.65. Believe the February high in the industrials will be penetrated and the average will reach 196-201 over the intermediate term. The rail pattern is more irregular and would hesitate to mention a technical price objective in this average, other than to say the average looks higher over the intermediate term. However, the pace of the advance has been extremely rapid. From the May 19th lows of 161.38 and 40.43, the averages have rallied 21.23 and 8.27 respectively, without any worthwhile correction. In fact, the first leg of the advance has carried further than we anticipated. Our objective was 180177. Would expect a minor dip before the industrial average penetrates the February high. However, fue market shows excellent basic strength and would expect such a correction to be relatively unimportant with possibly 177-175 as a correctional objective. Would await a dip before adding to committments. EDMUND W. TABELL July 7, 1947 SHIELDS & COMPANY DOW-JONES Industrials DOHJONES Rails DOW-JONES 65 STOCK 182.04 48.25 64.62 The opiaions eap,…ed 1n this lett.r are the personal interpretation of ciMm by Mr. Edmund W. T.bell end are not presented .1 the opinions of Shi.ld, I Company.