Hi to all,While I am no expert, I expect we will see a further...

Hi to all,

While I am no expert, I expect we will see a further slight decline in the BRM share price, albeit on very low volumes, to $1.785 before we turn upwards again. We may achieve this tomorrow as a downward spike before closing higher. That would effectively close the gap in price from $1.785 to $1.84 which occurred over the two consecutive trading days of Friday 9 October and Monday 12 October, during the last rapid rise. I alluded to this closure happening in my post of 16 October (Post: 4616472) and, although there is no rule that says such price gaps have to be closed at some future stage, almost without fail that is what happens, as most would know from experience.

I am hoping we see the required downward spike to achieve this gap closure tomorrow or Monday. Given today’s low of $1.84 we are almost there, down from a high of $2.23 on 16 October. By coincidence (is it really?), a spike down to $1.785 would also complete an exact 0.618 Fibonacci retracement, by my charting at least, from that high.

So what’s all that mean? I am now confident that the price will rise relatively quickly back to its former level of $2.23 and beyond once that gap is closed and the 0.618 retracement is complete. I do not feel that any announcement of significance will be required to achieve this outcome, just as the last rapid rise was achieved without one.

I know that charting overall, and specific issues such as gap closures, Fibonacci retracements and such things are viewed with scepticism by many, but keep in mind that most institutional investors and large fund managers base their decisions on these Technical Analysis processes, so they do have a direct bearing on share price movements. For this reason, the gap closure I mention above is a healthy thing as it will remove a dark cloud that has been hanging over BRM’s future price movements in the mind of most chartists and the buyers they advise.

Once that is over and done with, we can all get back to making money again! So while it may seem a strange thing to say, keep your fingers crossed for a sharp spike down on low volume to close the gap and look to top up if you have a mind to do so.

Regards,
Bones