Goodman Fielder 20/07/99


Goodman Fielder 20/07/99

Goodman Fielder presents an excellent example of a chart breaking support. When it does so, on such heavy volume, it indicates exceptional weakness. I make it standard practice in such situations, never to buy a stock making new lows unless there are very good other reasons for doing so (see Pacific Dunlop example) and even then, the weight of the herd is against you.

The trend is down still until those current "live" trend lines are broken. If the trend line breaks, a higher bottom will still have to form yet.

I am always better off looking for a chart with trend lines moving up, not down.


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