free fall?, page-39

Hi Qahm1,

I've attached an updated version of my BRM chart which contains two pitchforks. The green upwards sloping pitchfork has accurately described price movement for the last couple of months, while the downwards sloping pitchfork provides an alternate perspective of more recent price movements. The two are not mutually exclusive, but the question is which of the two will continue to descibe future price movements most accurately. In pitchfork theory, price always tries to return to the median line (ML) and in this case we have two diverging median lines.

I note that on Friday's session (30 Apr) price spiked down to touch the red median line, but recovered to close on the green median line, so there is no obvious change yet from the green to the red pitchfork as the dominant descriptor of price. I will be watching over the next few days to see if there is any clear indication as to which of the forks will be dominant, i.e. which path BRM's price is inclined to follow. The stochastic indicator does not look particularly encouraging in the short term.

I would not be surprised to see BRM's price continue upwards within the green pitchfork, either creeping up the median line, or moving within the lower channel formed by the median line and the green 0.382 Fibonacci line below it.

Regards,
Bones