back start next


[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [ 72 ] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90]


72

177 3/4 and Auburn holding above this half-way point showed it was in a strong position and ready to rally. At that time, 178 1/2 was on the 45 degree angle from 103 1/2, the low of January 19, 1931, and being the last and lowast 45 degree angle it was the strongest support point, from which a rally must take place an d the stock was a purchase with stop 3 points under.

[38] April 24th, Auburn rallied to 219 and hit the 45 degree angle from the bottom of 175 made on March 7th," then broke back under 213 3/4, the price angle, and broke 146 1/4 the day angle.

[39] April 30, 1931, Auburn declined to 187, resting on the 45 degree angle from the low of 103 1/2. [40] A sharp rally followed and on May 1st Auburn advanced to 227 1/2, just under the 45 degree angle from 157 1/2 days. This was a cross-angle and also a 45 degree angle from the top of 119 3/4. The price of 225 was on a strong resistance, or 225 degrees, which is 5/8 of a circle, and Auburn failed to go 3 points above it. [41] A big break followed in the afternoon of the same day and Auburn declined to 184, which was 3 points under lowest 45 degree angle from 103 1/2, the bottom of January 19, 1931, and was just above the 45 degree angle from the 135th market day and on the 146th market day from November 5, 1930, and on the 179th calendar day from the bottom, which was a strong indication for bottom or a change in trend. Auburn quickly regained the 45 degree angle from the lowest parallel; then crossed the 45 degree angle drawn from 60 3/8.

[42] May 5th, Auburn advanced to 225 1/2, where it struck the same resistance of 225 on the natural resistance angles. It hit a 45 degree angle from the low point of 183 and the 45 degree angle from the top made on May 1st, and was just under the 45 degree angle from the 157 1/2 day, a strong resistance point.

May 6th, Auburn declined to 203 on the 45 degree angle from the 146 1/4 day and being just above the natural resistance angle of 202 1/2, it received strong support, rallied and crossed the angle of 45 degrees from 60 3/8 which put it again in a very strong position.

[43] May 9, 1931, Auburn advanced to 252. This was just under the 45 degree angle from 219, the low of March 30th and on the 22nd day from the top of April 14, 1931. You will note that 257 is 1/2 of the highest price at which Auburn ever sold-514. May 9th was 330 market days from April 1, 1930, which is ijnportant, and 103 market days from 60 3/8 and 185 calendar days form 60 3/8. On May 9th Auburn dropped back under the 45 degree angle from the 168 3/4 day, declined to 237 where it rested on the angle of 45 degrees from the top at 119 3/4 made January 18, 1931.

At this writing. May 9, 1931, Auburn is in a strong position on Angles, but is a short sale on rallies with a stop at 260, which is 3 points above the half-way point, or 1/2 of 514. The stock is in a strong position on angles and you have to watch the 45 degree angle from the top at 295 1/2 and the angle marked in green from 180. As long as Auburn can hold above the 45 degree angle from 60 3/8 it is still in a position to rally, but when it breaks the 45 degree angle from 60 3/8 and the lowest 45 degree angle from



101 1/4 and 101 1/2, the bottoms of January 14th and 19th, 1931, it will then indicate a big decline.

If Auburn can cross 260, the next resistance point will be around 273 and the next around 287 and should it get through the old top of 295 1/2 or cross 300, it will then indicate very much higher prices. You should always watch the 1/4 and 1/2 points from the last important bottom. In Auburns present position, the point to watch would be between 180 and 252. Also 237 3/4 which is 1/2 from 295 1/2 to 180. Auburn closed just around this point on May 9th, which is near 240 and an important resistance level, which is 2/3 of the circle. Should Auburn break 234 now, or over 3 points under this half-way point it will indicate lower.

MAY 9, 1931."



The following is an excellent example of Mr. Ganns analysis of an individual stock. I have numbered in the text and corresponding points of reference on the chart.

UNITED STATES STEEL CORPORATION

"This company was incorporated February 25, 1901. Trading in the common stock began on the New York Stock Exchange on March 28, 1901, when it opened at 42 3/4. Now, this being a new stock, which was not listed on the exchange before, we have no high and low to go by, so the first rule to apply is: If the stock moves down 3 points first, it will indicate still lower; if it advances 3 points, it will indicate that it is going higher. Next, we put on the square of 90. [1] You will see that I have drawn the angles up from 0 beginnirfg with March 1901, and drawn the angles down from 90 beginning March, 1901. These angles will show whether the stock is in a strong or weak position after it fluctuates for a short time.

Using the 3-point rule, the stock advanced to 46 from 43, which is 3 points up and would indicate higher, especially as it had crossed 45. But you will note it is below the 8X1 angle drawn down from 90 which shows a weak position. While from the bottom it is above the 8X1 angle and is strong for some kind of rally. It goes to 55. Now note your resistance levels, 56 1/4 is the resistance level because it is 45 plus 11 1/4. 54 is the resistance level on the Nine Square and the Master Twelve Square. 55 is one of the psychological points where the public buys a stock after it crosses 50 because they think it is going much higher. [2] After the stock has gone up to 55, take 1/2 from 43 to 55, which is 49. Breaking 49, the halfway point, shows trend down. After breaking this level it broke the low level at 43.

[3] The next way to calculate is to take 1/2 of 55, which is 27 1/2. During the panic of May 9, 1901, U. S. Steel declined to 24. Twenty four is an exact point on the Master Twelve Chart and 22 1/2 is the support levels on the angles. Take the halfway point of the stock 27 1/2, and the angle of 22 1/2 degrees and get the halfway point between these. It is 25, which indicated around 25 would be strong support for a rally.

[41 Next, from the top 55 to the low 24, we get the halfwey point which is 39 1/2. If the stock crosses this point, then the next resistance point is the 3/4 point, which is 47. It advances to 48 in July, 1901, and holds for several months without breaking back below 39 1/2. However, it fails to cross the 45 degree angle from 90 and from 55, [5] In October, 1902, it breaks 39 1/2 and breaks below the 45 degree angle from the 24 bottom, putting it into a weak position. [6] Notice that in July, 1923, the 45 degree angles from 0 and from 90 cross at 28 and that 27 1/2 is the halfway point of 55. [7] The stock breaks under the 45 degree angle and from 0 for the first time; then goes straight



[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [ 72 ] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90]