Hi all,Wah Nam's announcement after close of trading on 10 June,...

Hi all,

Wah Nam's announcement after close of trading on 10 June, that the takeover offer will not be extended beyond 15 June may well mark a clear turning point for BRM's share price. From a purely charting perspective, I expect to see a strong indication, one way or the other, in the next few days and certainly by the end of this coming week.

For those who attach some credence to the black art of charting, here's my take on the current situation with BRM, as at close of trading on Friday, 10 June.

The attached clickable chart contains two pitchforks; a longer term green fork and a shorter term blue fork, each with internal 0.236 and 0.618 Fibonacci divisions marked. The green fork also has two external Warning Lines marked, each of which creates a channel with the same width as half of the green pitchfork (as indicated by the magenta arrows). The focus of attention is on the blue pitchfork and in particular, the area of the red elipse. All critical comments are marked on the chart for convenience.



I drew the blue pitchfork on my charts on 17 May after it became clear to me that the low on 13 May was actually a clear pivot point. From 13 May, price rose to push through the potential resistance of the 0.618 Fibonacci line and then, in accordance with pitchfork theory, performed a 'back-test' of that line to see if that former indicated resistance level now provided support. That back-test failed on 24 May and so did the attempt on 25 May to close above that line. Price then continued to sink until reaching the Lower Median Line Parallel (L-MLH) last Friday, 10 June. Note that price closed on, but not below, this line. So, on its first encounter with that line price has found initial support. Note also that this closing price was in advance of Wah Nam's announcement, so it was clearly not affected by it.

I will be looking now for price to complete a 'test-retest' pattern over the next few days to see if that line continues to provide support. If it does, then I would expect BRM's price to have a new, solid foundation for renewed upwards movement. The fact that the 2nd Warning Line of the green pitchfork (also a potential support line) intersects the current blue support line in this immediate area is a very positive sign.

Time will tell of course, but from a purely charting perspective the next few days should tell us whether or not BRM's price has reached a turning point and if it is about to start a steady recovery.

As always, any questions or alternative views are welcomed in the interests of us all gaining a balanced perspective.

Regards,
Bones