Yes Ladies and Gentlemen, the horses are at the barriers and they're lining up for this Mondays "Yes we are Having a Correction" Handicap, the stewards will be checking the weights at the end of the race, but the whisper is that, the techs could be heavy.
Not that the Nasdaq correction will have any great bearing upon BRN at this point of its initial breakout, as investors around the world are beginning to see the amazing new technology investment opportunity BRN presents, but there is a correlation here, and this correction is timed to a nicety in terms of where BRN is sitting after recent price action.
So as BRNs' meteoric rise over early Jan up to the the 19th had investors jumping in at any opportunity, and saw a huge jump in SP valuation. BRN closed 2021 @68c and reached $2.34 over 12 days of very high volume trading which has been unprecedented in BRNs' history, thus far.
Of course when anything gets as vertical as BRN did, you eventually get to a point where buying exhaustion sets in. This was happening as the broader Market at large has begun to realize that we are having a correction and it does look to be larger than the minor corrections of Nov and Dec 2021.
This correction has kinda snuck up on the market, but the numbers are there to see, and the big indices in NY, and the S&P500 in particular (which also includes some massive techs) which is my overall Market health indicator, but also very much Dow and the NDQ. These have all been trading choppy, but all the while achieving new highs over last several months.
However this correction will be deeper and more protracted than the Nov and Dec ones. In a previous charting post #58244954 on 12/12/21 I spoke to where the SPX (S&P500) could be heading over a certain timeframe:
View attachment 4024109The SPX didn't quite get to 4.882, the recent high was 4,818, and it's abundantly clear 4,882 won't be seen on the SPX until sometime after this correction is completed, unfortunately SPX couldn't reach the projected highs mentioned above (this would have given higher projections for the next move up). My tagging on SPX is that we have just completed a 3rd Wave up from the Mar/Apr 2020 lows and we are now in a 4th Wave down before the 5th Wave up.
As for timing the mid Jan correction call was reasonable and I don't see this SPX 4th down ending before early March, the lows on my projections are in the 4,347 to 4,253 area, which looks like the SPX could be very choppy, or could we go lower ?? (nothing set in stone here but accurate EW tagging and Fibbo is about probabilities and percentages thereof), however I don't see anything like a serious crash here and am looking towards new highs later this year into next year.
IMO going forward immediately for BRN, while the recent sharp uptrend has reached point of exhaustion and we will/are now experiencing a Wave 2 correction; and as I said there is a correlation with the broader market price action with this BRN wave 2 correction, I have strong conviction that BRN will more than likely diverge from the broader market correction price action before the SPX hits its' 4th wave low.
There are a number of drivers behind my position on BRNs' near future price action from a technical, but also very much from a fundamental view as well. However before I enlarge upon those perspectives an EW tagged chart of where I think BRN sits.
View attachment 4024820The above chart is in 1 hr bars, and includes this mornings' $1.585 low, which is now pretty close to the 38.2% fibbo retrace level of $1.56, for 2nd wave retracements this normally a minimum retrace and a very high statistical probability. From here you can see the 50% level and the 61.8 levels on the right of the chart, the depth of retrace from here is difficult to predict, however 61.8 is lower probability than 31.8 or 50.
Something to be borne in mind is that Intermediate Wave 1 of this Major Wave 3, has travelled from 36.5c on 6/10/2021 to the recent high of $2.34 - this is a move in Minor Wave 1 of 198.5c in approx 3 month timeframe. Most of this price action (from 68c to $2.34) took place the first 12 trading days of the year.
Intermediate Wave 1 is marked in green on my charts, so going down a degree are the Minor waves marked in red, and degree lower are Sub Minor waves marked in purple.
Next chart gives bigger perspective of Intermediate Wave 1 up.
View attachment 4025126The above chart is in daily bars and gives simplified count for Intermediate Wave 1 up, the five Intermediate waves will comprise Major Wave 3 up. So after Intermediate Wave 2 down completes, then BRN will move into Intermediate Wave 3 up, the 3rd wave up is often the most impulsive of the upward motive waves 1, 3 and 5.
Current price levels could prove to be canny buying, because as the fundamentals tell us BRN has an EAP relationship with somewhere between 15 and 20 well known companies, some of these relationships have been ongoing for near to 3 years. As these relationships mature Akida IP or chip sales will begin to build, names could drop at any time, and from where BRN sits right at the moment announcements are going to be the main driver.
In the meantime another factor in SP direction could obviously be the 4C (Qtrly) which is quite likely due this week, some sectors of the market may be inclined to make waves if there is a perceived lack of income disclosed by BRN, who knows what Mr Market will decide, we do expect possibly $2 mill from the MegaChips deal, I look forward to the 4 C regardless.
So while it is very possible BRN may see lower price action over the next period of time, remembering Intermediate wave 1 up has taken over 3 months, it is most unlikely that BRN will resume its' next run up without spending more time in this wave 2, a chunk of that time could be sideways up and down price action.
Time will tell there. The BOTS and their insto masters have been accumulating heavily BRN will continue to be manipulated and the traders will continue to ply their business.
None of this matters in the least to me because I will not be selling any of my precious holding, so the day to day, week to week price action is not my main interest. For me what is of much greater importance is that, I am here for $10 absolute minimum, there are timeframes on that horizon.
However my sense of this story is that BRN will be well north of $10 in a timeframe which may surprise many, and Intermediate Wave 1 has made the potential of BRN very apparent to a lot of market observers all of a sudden. So in many respects my timeframe for BRN price movement has just been enhanced exponentially, it has been a very exciting and inspiring beginning to 2022. Intermediate Wave 3 is in the offing, and as some know 3rd waves can be big. So I keep an eagle eye and hold tight.
GLTAH
mc
(20min delay)