For those who were disappointed today to see BRM give up some of yesterday's gains, don't be. Here's why...
Price action today was just what was required technically to provide a firm base for future gains. If you look at the attached chart, and particularly at price action within the square red border, you will see that yesterday's price action opened exactly on the upwards sloping blue line (the Lower Median Line Parallel of the blue pitchfork) then dropped to perform a perfect touch on the lower line of the ascending triangle before rising again to close on its high for the day.
Yesterday's upwards breakout from that purple ascending triangle also represented a successful close above the sloping blue line which has acted as resistance on at least six earlier occasions within that square red border, where price has penetrated the blue line but could not manage to close above it. After yesterday's successful close above the line, I expected price today to perform a 'back-test' of that line, that is, a test to confirm that this previous resistance line is now acting as support. Today, price opened above the line and sank to perform an exact touch on the line but no lower, then recovered slightly to close above it once again. After this successful retest, I would now expect price to treat the Lower Median Line Parallel of the blue pitchfork as a general support line and a sound basis for the next leg up - and that's a good thing!
Regards, Bones
BRM Price at posting:
$3.33 Sentiment: Hold Disclosure: Held
