The following comments apply to the attached chart and for your convenience are also displayed on the chart itself in case you choose to download it. If anyone sees another interpretation of the current situation, please feel free to respond. This is definitely an area where two heads (or more) are better than one.
Regards, Bones -------------------------- The symmetrical triangle continuation pattern identified last week has continued. The formerly identified green ascending baseline is no longer relevant. It's role has now been overtaken by the ascending blue line EE - FF, but the red descending line CC - DD is still valid. As stated earlier, such a contracting wedge more often than not marks a continuation of the current trend, in this case the rising share price since around 1 Jun 09 in the short term, and in the longer term, the average/median increase in the share price since Jan 09.
With a symmetrical triangle, the direction of the next major move can only be determined after a valid breakout has occurred. This symmetrical wedge still appears to represent a consolidation period before continuing the trends mentioned above.
For a break to be considered valid, it should be on a closing basis. We have already had one close above the descending red CC – DD line in the direction of the short and long term trends I described but it faltered and the pattern has continued sideways in a limited trading range (1.20 – 1.25). Volume has been relatively consistent and if anything has shown a progressive decline during the week. Another close in the share price above the descending red line CC – DD might act as a catalyst for further price action. All in all, an uninspiring performance over the last week.
BRM Price at posting:
$1.21 Sentiment: Hold Disclosure: Held
