Another Bear Call for BPI common shares. It's been more than a year since I covered BPI. The most current pattern we drew is called the rising wedge. The Rising Wedge is significant (probably) because it signals weakness for prices ahead. Note the 2 red dots. The first instance of the red dot was near the hundreds. The second instance is also at the same 100 level. Price could go sour for the short-term. The weeklies and the daily charts seems to confirm each other.
The encircled portions are significant because it demonstrate Japanese Candle Stick Patterns. Circle 1 demonstrate bearish dark cloud covering pattern. Circle 2 demonstrate Top Twizzer. It's significant because of the level where it appeared and should it be placed in conjunction with Western Chart Pattern of the Rising Wedge (up sloping triangle). It's definitely calling out for caution.
This is the daily version of the 2 year time frame chart. Rising Wedge is definitely also there. Macd indicator looks bearish divergent. RSI also showing bearish divergence.
Before we ultimately put a bearish verdict on this issue. Let's look for two reasons why BPI isn't bearish at all. 1. Notice that the major downtrend line was broken in both weeklies and daily charts. However, after the break through, prices are sluggish and shows lots of weakness. 2. There's still no confirmation for the bearish call of the rising wedge. Definitely it's bearish outlook needs to be confirmed.
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