those chicken entrails...

Good morning all,

For those who are interested, here's my reading of the chicken entrails looking one month ahead.

Price seems to be developing an ascending triangle pattern, as drawn on the chart. If this pattern continues, then an upwards breakout should occur by no later than 15 June. Given the shape of the triangle and the likelihood of price making another touch on the lower line before that breakout, we may see price drop to the $2.85 - $2.90 region before that breakout occurs, and the Stochastic also indicates this is likely in the immediate future. That should be regarded as a further buying opportunity for those who are looking to top up before a return to previous highs.

The shape of the ascending triangle also indicates that the breakout, when it occurs, could be a strong one and could see a swift rise. I would expect it to be in the order of about 60 cents. That seems logical as it would take price to the region of the median line of the underlying blue pitchfork, closing the existing gap at $3.40 - $3.55 in the process, and we know that price always tries to return to the median line of the currently dominant pitchfork.

Of course, I could be wrong, but it makes me feel a lot better about the month of June to think I'm right. Then again, with chicken entrails, you can never know for sure...

Fingers crossed,
Bones