Friday, April 20, 2007

Leg 2 of Bull Break

Yesterday's trading session created 2 Legs of a Bull Break. Leg 1 was formed during the drop in PRICE during the Globex session (triggered by fears China's overheating economy - haven't we heard this before), which ended with a PRIME PPF of Support (PRIME Support - 1468.25 on the Trading Chart) at 10:34pm (Singapore Time) at 1471.50.
From then on, PRICE continued it's journey back up (Leg 2 of Bull Break) to challenge last PRIME Resistance (TREND Chart) at 1484.50 - PRICE must fail before this level, in order for Leg 2 to form. However, if PRICE manages to clear this level instead, then Leg 1 of Bull Break would be invalidated and the Bull Trend continues (TREND Chart Basis).

In summary:
End of Leg 1 of Bull Break: 1468.25
End of Leg 2 of Bull Break: Still in the processing of forming...there is some consolidation, going into the close of the session.

We must have the full 3 Legs, in order to change the TREND of PRICE.

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