Thursday, March 29, 2007

Leg 2 of Bull Break

Last night, shortly after I signed off, I posted a note saying that the bottom for the Leg 1 Bull Break was in and Leg 2 was in progress & that we were heading back up to challenge last PRIME Resistance at 1449.00.

Trading Chart
The up move could only reach 1436.50, after which PRICE started to fail, giving a PRIME PPF of Resistance(1436.50) at 1435.50 (1:44am, Singapore Time). Thus, Leg 2 of Bull Break ended at 1436.50. PRICE then started to head down (start of Leg 3). The Matched PRIME Supports at 1426.75 does indicate the lack of strength in the down move, and we could possibly see PRICE heading back up. We need PRICE to Breach last PRIME Resistance at 1432.25 to get the up move going. ( TREND Chart - 1436.50 is the next crucial level - Breaching it which will invalidate both the 2 Legs of the Bull Break, and bring us back into the Bull TREND )

With PRICE stopping short at 1426.75 in PRIME (effectively a PRIME PPF of Support), the end of Leg 3 of Bull Break may not get a chance to form at all. Leg 3 must create a Lower Low than 1424.25 - Last PRIME Support, which is also end of Leg 1 of Bull Break.
A Recap of the 3 Legs:
Leg 1 of Bull Break - ended at 1424.25
Leg 2 of Bull Break - ended at 1436.50
Leg 3 of Bull Break - must end lower than 1424.25 (which at the moment, looks remote)

Swing Chart
PRICE is now in PRIME Territory, creating a Higher Low - With the Trend Chart giving us a PRIME PPF of Support, PRICE may just be ripe for the challenge of 1451.00 in the sessions to come.

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