who's shorting bhp, page-12

The last two legs have been classic examples of supply and demand volume spread analysis.

Look at the volume dry up as the SP makes a move from $24 to $31, there is simply no demand at the higher price.

The SP subsequently retreats.

Buyers are found as the SP falls to new low of $20. Demand is confirmed by volume increse.

Peak volume is found at the base of the move.

Now for this current leg, watch as demand dries up again as the SP makes a move higher.

The low point of this demand would mark the high of the intermediate move and would be a good place to open a short position.

We will see a retest of the $24 low, and if it holds verfied by an increase in volume and hence demand, it will provide a good base for a move higher.

If it doesn't hold, say hello to $20 again, or lower until demand is found.