There seems to be some sort of inevitable symmetry about the action in Cable since before the summer. Then we had finished the run up and the bullet point was neutral with the Long MA as support and the band 1.5852 – 1.5877 as resistance.
Since then we continued lower then happily back up to levels at last time of writing followed by sideways. All good until the week before last week when we on the Daily Chart above we had a possible Pipe Top & possible 3rd Shoulder in an extended H+S Top formation. Whilst on the Weekly Chart we ended up with a KR Down! Since then we have significantly had consecutive closes below the Long MA (currently 1.5353), the key 50% Fib at 1.5244 & as at yesterday the lowest close since early May.
So with this in mind, I’ve altered the bullet point above into mildly bearish rather than full bearish as the Medium MA is still rising. However, I am prepared to go further bearish if this turns lower. The inevitable symmetry I wrote about above refers to the possibility that there is recently a H+S Top Pattern. I haven’t drawn the Neckline as I think it is imperfect and have concerns as to its placing but I would say that should we get a second close below 1.5200 on Monday then the opportunity presents for a test possibly of 1.4900 area as a target. In between we have support at 1.5083 & 1.4972 onwards.
Additionally, we have a crossover of Tines of Andrews & Schiff Pitchforks on Monday & the 24th but the most important crossover is next Friday. I would expect some significant action or volatility that day which would strengthen (or severely hamper) further direction in the short term. Topside – well that is limited by the combination of the previously mentioned Long MA & 50% Fib.
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