Richard Perry
Independent Analyst
The first really corrective signal we have seen on Cable as a bearish key one day reversal has been formed from yesterday’s peak at $1.5552 to close below the previous low. Whilst this signal is not terminal signal for the bullish trend, it certainly now poses questions for its sustainability. We must now look for other signals that confirms a potential strengthening of the bearish position. The initial reaction has been positive by the bulls with a small rebound off $1.5390. The momentum indicators are not as positive as they have been but nothing too corrective yet. I continue to see the support at $1.5300 as important and the intraday hourly chart shows that the reaction low at $1.5330 adds further support. A positive close tonight would be a positive response by the bulls but this chart could now be in transition so we need to play this with a little more caution now. A move back above $1.5552 would re-engage the bull control.
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