Mid December 2010, BRCD was highlighted in a trading concepts post to try to identify the trend that seemed to be beginning off the 4.64 low on 8/24/10.
The analysis showed that the internal wave 1 of parent wave 5 price target could be 9.00. BRCD at last look had completed a wave 2 of the 5 waves projected. The wave 2 level should be read as 4.86 on 11/30/10. This wave two can be seen in this chart.
From this point BRCD traded to what appears to be an internal wave 1 of wave 3 price peak at 5.50 on 12/10/10. This internal wave is shown in light blue in the chart below.
If this internal wave count stands up to future trading, it looks as if BRCD has just broken out of an internal wave 2 flat correction shown in red.
The price range shown for the wave 4 target illustrates either flat or triangle projections. As well, the range for wave 1 internal shows the difference between the internal projected wave 5 (light blue) and the internal wave 1 of wave 5 (green) calculations.
The MACD shows divergence for internal wave 1 (light blue) between waves 3 and 5 of wave 1.
Also at this time frame, the most current MACD wave has created a new high, which could depict an internal wave 3, likely to the wave 5 target of the larger time frame- 6.31. If you look at smaller time frames charts, 15min or 5min, there is already divergence to the current price high that correlates with the new wave 3 MACD seen in this chart.
