monday night chart - 13 july

Good evening all,

I am posting two charts tonight - one for BRM and one for the All Ords index.

BRM
If the high of a daily price bar penetrates the upper median line of the RED pitchfork but the price closes below that line, then the resistance offered by that line is weakened but not removed. If the price closes above that red line, then the red pitchfork no longer describes (contains) the price movements of BRM and the GREEN pitchfork become the dominant descriptor of likely short-term price movements.

Applying the same rationale, the BLUE pitchfork remains a valid descriptor of BRM's likely longer-term price movements.

Note the purple support line at $1.15 and the intermediate price target of $1.365.

In the immediate future, there is a possibility that the price may be temporarily contained within the descending resistance line (the upper median line) of the red pitchfork and the ascending lower line of the green pitchfork. This price 'compression' could precede an eventual, strong breakout through resistance.

BRM Forecast: Short to intermediate term gains, followed by an uncertain future which depends on whether BRM manages to break out of the bearish wedge described above, and fully occupy the ascending GREEN pitchfork's upper channel.


ALL ORDS (Chart supplied by Totterdell91)
T91 decided to have a look at the all ords to see if he could get a better idea of where the general Australian market is headed, rather than just the financials. The chart has a daily timeframe and it's indicators clearly show that a bounce is here now.

T91's comments: "It is likely that we will bounce and head back to 4000, reverse from a retest of the blue resistance tine, then head back down for a retest of the green support tine, or a sliding parallel which mirrors the other two I have drawn in."

Essentially, when the All Ords and ASX approach the top of their respective channels, you might consider reverting largely to cash to take advantage of a likely pullback from that point.