Hi FolksIt's a sleepy Sunday , just about time for a BRN chart...

Hi Folks

It's a sleepy Sunday , just about time for a BRN chart update.

A couple of weeks ago I posted a daily chart showing 6 descending waterlines. A copy of that chart is at the bottom of this post. Currently we seem to be forming a new waterline in the 30-31c range.

Firstly I deal with the sceptical bananas comparison chart. It did tick another box by cutting down into the waterline as suggested. Personally I think it will be tested this coming week, as I believed that it will not cope with this waterline continuing further. Ahead of the quarterly that's a chance of happening. So the action may indeed be paused.

It's predicting a leak below that waterline into the high 20's. Not a couple of days of dip or a dive to return to the surface. We shall see, Anyway I am travelling next month and will be away until around July. I wasn't planning to keep the weekly forecasts going while travelling, so it's demise is welcome.

Traditional charting.

* we have a downward A-wave from 53.5 to 30 ( 45% drop in SP)
* B-wave bounce up to midway between the 23-38% (fairly normal)
* Started the C-wave extention downwards and encountered the waterline. The waterline is currently 20days old and how long it will last? I can't determine. As you can see from my second chart below there can be multiple bounces from these waterlines before a downward leak occurs. If there is a trading halt with news of a IP agreement surfaces then this leak will never occur. I can't chart the news.

I am hoping for a leak before I travel to complete the third leg of my free-carry trading strategy with a rebuy target price in mind. then looking for another DCB to again sell into.

If there is no trading halt before my return, it will leak downwards. That's why on my second chart there were 6 descending waterlines. No news.

Just the way I deal with the markets so that I am not surprised by what plays out, as always DYOR.

cheers Lies