What's Happened ?, page-49

Hi mate

Below I have uploaded a weekly chart for us LT's.

That black line is a trend line that has been in play for a few years now so we will look to that line for future support if the SP retraces further.

The Tenkan Sen & Kijun Sen have turned flat, that usually signifies the SP is in a consolidation period. Also, when the Kijun Sen turns flat it's an attractor of price activity, so the SP will tend to drift towards it (blue arrows). The Kijun Sen at the 38 cent area will act as support so we shouldn't see the SP fall much further. If it does, the second level of support (until April) is the top of the Kumo at the 33 cent area.

If all that fails that historical black trend line will then come back into play!

The pink line is resistance. The SP might be getting compressed into a rising wedge pattern (black & pink lines). Perhaps over the next year if the SP continues to bounce off that black trend line we may see a bullish breakout of the SP above that psychological 50 cent area.

First level of resistance could be the 40 cent area, then 45 cent & finally the 50 cent mark.

Overall the market is trading above the Kumo so we are bullish in the LT, but facing a sideways market until more positive news/action is released my NMT.

IMO