Hi to all,As requested by MiningGuru today, here is an updated...

Hi to all,

As requested by MiningGuru today, here is an updated BRM chart as at close of trading on 16 Aug 11. I hope it's of some interest.

BACKGROUND

This post is actually an extension of my earlier post of 27/07/11 at 12:30, entitled 'observations on price movement', and should be read as a follow-up to that post.

As stated in that earlier post, I am not making any predictions regarding BRM's share price, given that it is clearly subject to regular and deliberate manipulation (in my opinion), but I thought it would be interesting to highlight a few further observations.

I have attached a clickable chart containing the same Andrew's Pitchfork (in blue) that I first drew back in mid-November 2010 and have been updating ever since. It still remains a valid descriptor of BRM's overall price movement, in my opinion. The chart contains the original dark blue pitchfork with a series of parallel blue 'warning' lines, spaced at the same distance as half the pitchfork's width. I have also shown similarly spaced green lines representing the corresponding 0.382 Fibonacci divisions between them.

For ease of reference, I have included the chart from my earlier post (27 July) below to compare with today's update. On the update, the information covered in the earlier chart is marked by the light green wash and only the area of new information is unmarked.

ORIGINAL CHART FROM 27 JULY




UPDATED CHART AS AT 16 AUGUST



MY OBSERVATIONS

Despite further, apparent price manipulation since the last chart, note that price has continued to react in some discernable way on reaching each of the blue or green lines.

Note on the updated chart that price ran out of upwards momentum at Point 1 (see red text) before reaching and testing the green line as resistance. It then fell back quickly to its last support level, to close on the blue line at Point 2. That support level failed during the next trading session which gapped down on the open. The following day it failed to find support at the next lower level (the green line) after opening on that level and quickly headed towards the next level of support - the lower blue line, reaching Point 3 before regaining some strength to close higher for the day.

Point 4 shows two consecutive days where price again tested the support of the green line from above and it held. The remaining three bars indicate indecisive / weak momentum that has not produced any nett gains from the prior $3.20 close

MY EXPECTATIONS

I expect that price will again test the green line as a support level in the next day or two, perhaps as an intra-day low touching the line at $3.08 before confirming it as support and moving upwards again. However, should that retest of the green line fail, price will once again dive towards the lower blue line, at around the $2.50 level, to retest it as support. I think this is less probable.

Remember, these lines exist on my chart only because I have drawn them there in accordance with pitchfork theory, yet price appears to 'react' to them in some discernable way, on an ongoing basis. Food for thought!

Regards,
Bones