Richard Perry
Independent Analyst
We have seen a small technical rally take shape on Cable, however looking at the daily chart this is still simply counter trend and is likely to be seen as a chance to sell. The daily technical indicators have unwound slightly but the RSI is again into an area where the sellers have tended to resume control. Also the falling 21 day moving average (currently $1.5200) which has been a consistent barrier to gains in recent months is also close overhead. The intraday hourly chart shows that a small head and shoulders base pattern, completed above the $1.5030 old support area, has now hit its implied target of $1.5110 and this should enable the bears to regain control once more. The hourly MACD lines have crossed lower again and the RSI is dropping away so this could now be the extent of the rebound near term. A move back below the overnight low at $1.5065 could usher the sellers back in again. $1.5030 is a near term support again. The bulls have still got $1.5200 resistance to negotiate.
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