Very cluttered I know. But I've been working off this chart...

Very cluttered I know. But I've been working off this chart since about 2006 with exceptional results. At present on the short term we are sitting at a 50% retrace into a WRC. Now we can class that as an unnatural candle as its birth was due to traders taking advantage of the herd’s reaction to the prime ministers announcement. Without that announcement as I stated previously this would have already dropped below the previous low at 0.036.

Now we have a lot who listened to the hype and bought in on the highs and are presently watching the SP do its thing and go south. A lot of them in my opinion on that WRC being taken out will sell. This will without any positive news being released from Pen management have an aggravated effect on the SP taking it below the previous low and dropping it to the first congested cycle from the 8/2/11 to 0.03 cents.

Short term prospects for us are looking rather dismal. If that 50% retrace can hold we can take advantage for a few pips here and there. But there’s nothing positive until 16/2/12 & 2/3/12. There are five congestion points that I’ll call as we are about to hit them between now and 0.03cents if no announcement is released and the above scenario does play out.