This was sent yesterday...
BOTTOM LINE
11/10:
EW Trend: Corrective (?)
Price Trend: Up
Trend Strength: Strong
Broker Consensus: Strong BUY
20/9:
EW Trend: Corrective
Price Trend: Down
Trend Strength: Weak
Broker Consensus: Strong BUY
LAYMANS ANALYSIS
11/10:
VIDEO ANALYSIS (1 mins 58 secs)
Today's 4% surge, high close and high volume put my "want" of a continued dip well out of the picture. Whilst it's technically still possible, its now, more or less, improbable. Whilst we have seen high volume days before, the price relationship shown today is nothing short of very bullish. It's extremely probable that the BNB trend will now resume after its 4-month pause and that new high is close by. I would expect the immediate targets are just through $24.00, but the larger targets extend well beyond that should we see continuing signs of bullish behaviour. On the flipside, any failure and subsequent break back below the late September lows of $19.22 would suggest the original weakness is back in favour.
20/9:
VIDEO ANALYSIS (1 mins 40 secs)
Prices continue to meander and I still think they'll travel a touch lower before resuming the upward trend. I note with interest that the Brokers have moved their rating to the highest level of Strong BUY. Whilst this does fit the larger bullish picture I've been preaching for some time, its only appropriate so long as $15.75 is not broken (yes, $15.75 is a long way off). Today's weakness does reinforce my thinking that we'll trade lower over the coming weeks so if you are interested in BNB, I believe better levels will become available shortly. The lower $18.00 area should now offer very strong support and I would expect prices to reverse from those levels and move higher.
TECHNICAL DISCUSSION
11/10:
The June highs had been labelled at wave-(i) or -5. Continuing with the impulsive theme, the pattern since then can only be a nested impulse. The reason is that wave-(ii)'s cannot be resolved in the form of a triangle. Therefore, the August lows are deemed a wave-(ii) and we're now sub-dividing higher in a new structure whereby today takes the shape of a wave-iii. Following this smaller structure, the wave-iii target is $22.00 and the wave-v is a little over $24.00. The June 30 highs were $22.00 so the termination of wave-iii should be anticipated as weaker hands take profits. Bullish.
20/9:
The corrective pattern continues to take shape, slowly but surely. The wave-c/wave-a equilibrium is at $17.35 which is just a touch lower than a support band running back to earlier this year. Even so, this "general" area will offer support and we should expect the wave-(ii) to terminate in that region. If that in fact does occur, then the upside potential for BNB is very large. One thing at a time, so look for that weakness over the coming weeks, then look for evidence of a turn higher into wave-iii. The main reason why I think prices will travel lower at present is because the area between wave-a and -b was choppy in nature and not impulsive. That activity suggests corrective movement and as we know, wave-b is a corrective wave.
This post may contain advice that has been prepared by Reef Capital Coaching ABN 24 092 309 978 (“RCC”) and is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.
Past performance is not a reliable indication of future performance. This material has been prepared based on information believed to be accurate at the time of publication. Subsequent changes in circumstances may occur at any time and may impact the accuracy of the information.