chart at close of trading on 26 november

Hi all,

The chickens have been nervous all day, and with good reason. I have now completed a reading of new chicken entrails and have attempted to reflect the main messages which resulted from that endeavour in the attached chart. The chart reflects the situation at close of trading on Friday, 26 November.

You may recall that I last posted some charts on Sat, 13 Nov (see Post 5954814) at which stage I thought we would see an upwards price breakout from an ascending triangle within the following week. The breakout did occur on the following Tuesday but with little volume behind it, so it subsequently failed to hold the initial price gains. Since then, price has been moving sideways within a two cent trading range on uninspiring volumes.

ATTACHED CHART



The chart shows the same green pitchfork I have used before because it continues to be a valid descriptor of price movements, for the moment. As usual, I have made most of my comments on the clickable chart rather than in this text, as that makes the chart easier to understand and avoids having to switch between the two.

The main messages from the chart are as follows:

* Price has been drifting sideways on small volumes waiting for some catalyst to get it moving. It is currently completing a test/retest pattern of the current support line (i.e. the pale green 0.382 Fibonacci line below the dark green Median Line (ML)). Once this is completed, we may see the start of an upwards move similar to that which followed the last such test/retest pattern (marked on the chart).

* Apart from the two strong days of 26 & 27 Oct, price has remained largely within the two channels formed by the 0.382 Fib lines either side of the ML for the last seven weeks. It has been consolidating in the 23 to 27 cent range and I believe that normal buying pressure will soon come to bear to lift it out of that range.

* The price target for the next strong move up remains at 40.5 cents as stated in earlier posts. The second purple arrow on the chart (with the adjacent question mark) is to indicate possible start and finish points/levels for the next price rise and not the actual price path.

* Pitchfork theory states that price always tries to return to the Median Line, so it follows therefore that price should move along the general axis of the median line. DMA is continuing to do this in relation to the green pitchfork and while that remains the case it is reassuring.

* The Stochastic has begun to turn down while in the middle of its range, so it is likely that any upwards movement in price is still a few trading days away. It may still occur late next week and I would not complain if it occurred earlier.

Any questions or alternative views are welcomed. There are always different perspectives to be considered and the more views and opinions we collectively put forward, the better off we are.

Now I'm off to wash up. We're having chicken for dinner!

Regards,
Bones