Example

Daily UK Stock Report

March 30 2006

BLT

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Opinion: Bullish - Buy on a close above 1075

Support from the previous all time high at 908.5 has caused a strong bounce since our March-9 report and returned prices to the February registered all time highs of 1075. This action has also confirmed the tentative  rising support trendline of May-2005, which will be capable of carrying the stock to new highs over the months ahead. A close above 1075 is considered the trigger for a rise to 1200.

What would indicate a different scenario ?

Underpinned by yesterday's bullish gap action, a breakout from 1075 is considered the most likely probability. Closure of the gap at 1040.5/1030 on a closing basis is therefore necessary to deem that the breakout attempt has failed.

Key bull triggers activated by closing break

BLT relative to FTSE 100

Resistances

Implications if overflowed

1075

Is the signal for another leg higher of the advance from May-2005, which after a possible pause at 1150, is projected to reach 1200.

Key bear triggers activated by closing break

Supports

Implications if broken

1040.5/1030

Closes psychological bullish gap action of March-30 and confirms the attempt to clear 1075 has failed. Causes an initial retreat to 995.

Supports and Resistance table - Nearest Levels*

Supports

1040.5/

995

979/975

1030

Gap

Resistances

1075

1150

1200

Key to abbreviation of magnitudes in descending order

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