Tabell’s Market Letter – July 28, 1947
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Technical Market Action Fliote was originally recommended for purchase in the 32-30 buying range in our letter of September 10th. The stock broke below its indicated support and reached a low of 25 1/2 in October. The subsequent rally carried it back to 37 3/4 in January. A distributional area was formed in th 37-35 area early this year that indicated a dip to 27-23. The May 101 aB4. Mondays close was 32 3/4. A sizable potential base pattern has been built up and a penetration '. of the 1947 high would indicate substanvially higher levels. Bu' dtring periods of technical correction. Gel1!rr.!!1.Jtal.l.El was recoended for purchase in our letter of November 1st at 11. The I'ange since tla, date has been 14 3/8 nigh and 8 low. The longer term patte-n is excellent ald the stock is an excllm-c. lower priced trading medium. Hold committments and purchase on dips. 140ndays close was 11 5/8. Qal Motors was recommended for purchase in the 53-50 buying range in our letter of September 10th. The low was 47 3/4 and the subsequent rally carried General Motors back to a high of 65 7/8 in January 1947. The May decline held at 51 7/8 and the stock sppars to be in an uptr8nd, Mondays close was 60 3/4. Would add to holdings on rer,ct'ons. A possible temporary top area has been built up in the 61-60 range indicating a chance of a ip to 57-56. Q..2!l.t!lLRai1wa 3i1'…1. .11 was recommended for purchase in the 27- 23 buying area in our Jecer of Sepvabec lOth. The October ow wao 24 5/8. The stock rallied back to 31 ./2 in Fei)ruc.ry, bolt declined sha.-pl' in May to reach a low of 19. The comeback since that tirr,9 has been extremely apid and has caried it back to the early yea high of 31 l/, Mond&ys close was 31. Tne iS8ues appear to be building up a possible head and shoulders pattern ar.d should be bought on weakness into the 30-27 area. lf Oil was recommended for purchase at 60 in our letter of April 24th. Mondays dcse was 72 3/1 The stock has buil' up a large base area between 67 and 57 which has been penetrated upside. The intermedate term indication is 86 to 89. Buy during market setbacks. The market declined in the last hour of Mondays session on fairly heavy vo1'me. Last week high of 187,66 on the indust-ria).s was juct a f,,,-;tion above the ,Tul,' 14th high of 18'100) and the I'ai1 h5ph of 51.92 was still b6low the February high of 53.6;, This woui oe a logical spt to xpect a technical ccrrEOction of the ..6 point advace 'rcm lay. Jou'.d cxprot 18-177 t.o be a heay support 8ea. IntermBdi9.e ';,e'l'l ind''catj.cns st.ill pint ;0 che 196-201 area as the first impcI'tant upside resictance. 10u1d buy recoIlh-1ended iS3ues during periods of technical correction. EDMUND VI. TABELL July 28, 1947 SHIEIDS & COMPANY Closin,.g vC'1'l-Jones I!ldl'strials DO'd-Joncs FdiJ s Dow-Jones 65 stock 185.30 50.72 66.22 n.. opinlont exprened in this I…., ar. the pel'lOnai hrhrp,at.tion of chll' by Mr. Edmund W. T.bell and ar. not presented at the opinlom of Shl.ld, eo….pany.