A CHARTISTS PRICE GUIDE FOR NON-CHARTISTS.

My apologies to those on the list that are patiently waiting for a reply .. I made the mistake of taking a quick glance at BUR, and the next thing I knew, I was drawing trend lines all over its charts .. a sign of an addict :-)

Hiya CHOPSY,

BUR - 912.00p .. as you point out, a possible 'head & shoulders' formation developing, and if completed, I suppose it would mean retracement back to 775.00p (ignore the forward projected 'time span').



However, viewing the 2 yr 'all-data' chart, that's some major
'underlying uptrends', and I wouldn't give-up on it yet.



I reckon that the level that is going to dominate its movement during the next couple of months, is going to be the 1000.00p level, as this is one of the strongest 'psychological barriers' to overcome .. if the price is not capable of attacking this level, then the price may well start to retrace from its present level, and a downtrend would probably then develop .. but I don't think its going to give up that easily, and I reckon that it will at least attempt a 1000.00p breakout.

In order to attempt such a breakout, the price will need a period of consolidation in order to build up its strength, and the ideal position to consolidate, would be between 975.00p - 1000.00p, where it would be within a close attacking position .. it hasn't achieved that level yet, and I don't think its going to go very far until it has.

The chart above, shows that the price is above 3 x underlying uptrends .. all of which will attempt to support and lift the price ... its latest uptrend of around 3 mths, is fast approaching, and it will attempt to lift the price around the end of next week .. if the support of this uptrend should fail, which would be confirmed by a 'close' below the line .. then the price will have to rely on the next uptrend below, that has been in place for around 8 mths.

Those that follow my posts will be familiar with my obsession with the 25.00p interval levels, but on the 6 mth chart, they have all had quite a significant influence upon the price movement, and I reckon they will provide a good guide towards the short term price movement.

Sorry about the 'cobweb' on the chart below, it probably won't make much sense, but I have added it for my own information .. watch the price of the 'buy/sell trades' very closely as they approach each 25.00p interval .. each will provide resistance for a rising 'buying price', and support for a falling 'selling price' .. at its present price, its 'buying resistance' above is at 925.00p. If 'buys' start appearing above, there is a good chance of further upward movement towards 950.00p, and a 'close' above 925.00p would confirm this.

In the opposite direction, its 'selling support' below is at 900.00p, so if 'sells' start appearing below 900.00p, there is a good chance of further retracement towards 875.00p, and a 'close' below 900.00p would tend to confirm this.



By now you are probably totally confused, and sorry that you asked .. I am a strong believer in the phrase 'let the trend be your friend', and although the price may be showing signs of hesitation at the moment, its 'underlying uptrends' are still in place, and I reckon that there is a very good chance that the price will attempt a 1000.00p breakout during the next couple of months .. if succesful, expect some very strong upward movement upon the breakout of such a significant level.

If you are closely following it, I would be grateful if you could highlight it on this thread again if the price should 'close' either above 975.00p, or below 875.00p.