Hi ChippersWell BRN is never boring. After todays start I...

Hi Chippers

Well BRN is never boring. After todays start I thought I would revisit the charts as a follow up to the post I made last Tuesday. Things to notice from that post.

We did in make it through the breakout zone.

Next we penetrated the 1st target zone of Ext 23.6% - Ext 38.2% being 2.19 to 2.37. We got as high as 2.34. No surprises that this was followed by a profit taking retracement which now occurring.

Using a new FIB range of 0.645 to 2.34 yields the follow potential retracement zones.

* 1st retracement zone Ret 23.6% = 1.94 and Ret 38.2% = 1.69 so a zone of 1.69 - 1.94. Today we have been as low as 1.68 so far , no surprises there.

* Notice we filled the daily upward gap of 1.865 to 1.97. That was to be expected.

* 2nd retracement zone Ret 38.2% = 1.69 and Ret 50% = 1.49. If the US market remain weak penetrating into this zone would not be a surprise.

* Going under the Ret 50% of 1.49 is not completely out of the question. it happens sometimes.

Next I will be looking for the bargain hunting bounce after we form a new low (where that happens who know? But hoping for somewhere in the 2nd zone). how strong this bounce is will give us some ideas.

Notice on the chart I have labelled a breakout zone above 2.34 if we close a for a couple of days in that Zone it will be a bullish signal. It could take a long time to get into that zone, again who knows.

If that happens we will have the next extention target zone upward, whereby the 1st target zone is 2.74 - 2.98.

Just the way I deal with the markets so that I am not surprised by what plays out, as always DYOR.

cheers Lies