Daily Murmur 18/05/11 | Gary Glover | Finance News Network

Daily Murmur 18/05/11

by Gary Glover

Over the years I have noticed that speed lines can be very useful in finding support zones after a large trading range has been set.  The theory suggests that once they break the lines they will likely go to the next line before finding support and bouncing higher again.  On declines they can trade along these lines before breaking lower, so we could see BHP hold the current levels for a while in the short term.  Once we break this line then $39.00 will be the next support zone but in the short term it could hover above this line for sometime first.

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