brm versus ago, page-13

I thought I would continue this thread a little this morning, addressing DW2's original point, while respectfully disagreeing with his main contention.

This is the current BRM chart



As you can see BRM took off after it violated a descending head trend line back in January, that it is behaving to the rising base trend line which now has 3 conforming data points, and that it could be in a price channel, or in a very big rising wedge, if you accept the black head line. The current feature is the bullish harami, and even if the rising wedge is valid, it will not come together for a long time yet, so there is plenty of potential upside. (the link to explain the harami is in a previous post).

The price sits just below a major resistance zone in the customary yellow. Our next attempt might be the old knock 3 times, to break it. If so, the next major resistance is up in the 1.80 area, with minor resistance in the 1.40 and 1.55 zones. Support on the other hand is reasonably unambiguous at 1.11ish, and again in the .985 to $1 zone, followed by 84.5.
So if I was to apply money management risk/reward techniques, I have a 20c downside to a 60c upside, or 3 to 1.

This the chart for AGO



You can see it had a similar rise to BRM when it broke it's descending trend line, and there is a fib scale I have place on it to show potential upside/downside. I have also put the usual trend lines on the chart, and it looks very different to BRM. There is a potential for a descending triangle here, the link to explain this is http://www.investopedia.com/terms/d/descendingtriangle.asp
so I would be inclined to be cautious if I were investing here, although the downside projection would not be serious, it does suggest that there are better potential entry points than the current support zone. I should point out that a bullish pennant also has the same shape as a descending triangle, but that they generally resolve much sooner than this, and the upside target would be 1.73 as I calculate it.

This is a link to pennants http://www.investopedia.com/terms/p/pennant.asp ; I do not think the AGO pattern is a pennant, but that is only my opinion.

As a finishing note, I am not saying one equity is better than another. I am suggesting that market reaction to publicly available knowledge indicates (to me) that the market is placing a higher premium on BRM, and that the price patterns suggest more potential upside, based on hard price/volume evidence.

T91