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Tuesday, August 16, 2011

BHP - Weekly Candlesticks : Resistance $86

BHP - Weekly Candlesticks: "

via StockCharts.com"

Overview :
BHP : Mining Conglomerate : Has formed a Head and Shoulder pattern.
And as if on cue it has broken out of the neckline at $86. Dropped by about
the distance from Head to Neckline to $72. Which actually formed the
termination of mini Wave iii.

Awaiting clearer signal as to whether $86 would be the resistance also
the neckline that was broken. Prices will test neckline before falling.


Strategy :
Await Reversal Signal from hereabout and especially the retest of the neckline.
Punching through the neckline upwards of $86 would negate this Elliot Wave
Count.

Bias is to await for reversal and Short from $86 thereabouts.

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