Richard Perry
Independent Analyst
The concerns I had yesterday of a tiring of the upside move were reflected in the day's trading, which saw a fall below the near term support at $1.6770 and a five day low. This is not to say that there will now be a huge correction (which I do not believe there will be) but that trading in Cable is becoming a bit messy for the time being. Stretched momentum and a reluctance to push back above $1.6841 as resulted in an uncertain period, with intraday moving averages flattening off and hourly momentum giving mixed signals. I sense that there could be days of sideways consolidation compounded by false breaks ahead which will make it difficult to decisively call Cable. The bull long term trend suggests the ultimate move will be to the upside but the bulls are struggling to back the move at the moment.
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