It's been a week so it's time to update the old chart. This week all the lines are still there from last week, so you can judge for yourselves how well BRM is sticking to TA patterns.
What I have done is to zoom out a little, to a 9 month time frame, and stick in another fib scale over on the left, so you can see how well it matches up with old inflection points. The scale is cloned from the 0 to 100 scale of the advance from .41 to 1.11, and then repositioned so the zero line of the new scale sits on the 100 line of the old scale. I think it provides a reasonable view of what is likely to happen as BRM tries to regain it's former glory over the next few months.
I have also shown the 55, 34 and 8 day exponential moving averages as brown, red and blue lines. As you can see, if the price is greater than the blue line ( 8 ema ) it is generally a good thing to own BRM.
You may also have noticed I have placed a characature of foo in the white space over on the right. The reason is that price might be forming a "foo" pattern (also known as an inverted head and shoulders). You can see we have 2/3 of the pattern formed, and that if we continue, we can expect another little decline to .85, followed by a rally back to where we are currently. The foo pattern normally terminates with a rally of the same depth as the nose, added to the nose. This would give us a target of (1.11 - .85) + 1.11 = 1.38
Low and behold, the 1.382 extension of the big fib scale we have been watching is $1.379, which is near enough for me.
Bear in mind that I am not predicting a "foo" will eventuate, but it will give you something to watch if we do have a decline which looks to be softening around .85.....
I will be watching the support zone at 1.05 closely. Good luck with your positions, it might be a volatile week on US news.
BRM Price at posting:
$1.10 Sentiment: None Disclosure: Held
