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.


Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.

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