BKL illustrates the importance of historical data, in this case showing why 480 is providing support for BKL at the present time. Will the trend continue up, or stay within the newly formed down channel ? Watch for a break either way. On balance, tops usually become lows. I am expecting a sideways pattern from here, neither up nor down, with trading between 480 and 580.

BKL also illustrates two good examples of 5 wave Elliott patterns. Personally I have found Elliot wave patterns much easier to see in hindsight, than to trade them, but am working to improve this. Elliott waves become easier to spot when trend lines can be drawn to give a trend channel. Its a difficult concept, but immensely valuable if identified whilst in operation. Waves 2 and 4 should form the counter trend moves, wave three must be longer than wave one. There is most often a Fibonacci relationship between each wave, measured from each top and bottom within the five wave sequence.

Elliott waves are discussed in much greater depth in EIS advanced charting classes, if you would like to learn more about them.