Saturday, 21 July 2007

Ring My BEL

I have probably given up on BEL as it initially didn't look that attractive. Not until I zoomed out to a big picture of around 7 years.

As we see in the chart, there was a time that BEL came from the 3 to 4 peso level. It dipped so low that it looked like a deep sea diver when it dropped below 0.60. How times have changed. Right now, BEL seems to be consolidating near the 1.84 resistance. Should this breakout, there are 2 ways for us to play BEL using the cup and handle.

  • Use the rounding bottom since 2005. With this, I would buy on breakout at 1.86 and look at a target of roughly 2.80. Cut loss would be a return below the resistance line.
  • Use the big rounding bottom since 2000. The same trigger buy would be used here but target would now be higher at 3.45. Again, cut loss would be a return move below the resistance line.
BEL definitely looks promising. It's now just a matter of waiting for the breakout.


Investoke said...

I AGREE!! been following this since it touched the resistance last 6/22. It seems to be forming yet another handle for the smaller cup.

Anonymous said...

hi bonner! i just have to say that i am a big fan of your choice of Subject/Topic of your literature. Seems they are always closely associated with song titles or movie lines, both close to my heart. Needless to say I do always look forward to hear what Bonner says about trading ;-)

-- telly / suzywong

Tarantrader said...

Thanks for the vote of confidence, Telly!