Richard Perry
Independent Analyst
What a turnaround on Cable! From a position of looking to break to the upside yesterday, the UK retail sales disappointment completely turned the near term outlook on its head and driven lower by the weekly jobless claims, a bearish engulfing candlestick pattern (arguably a bearish key one day reversal - but the fact that it did not come in an uptrend reduces the negative implications of this slightly) has been formed. This has bolstered the resistance at $15670 and should put the sellers in control no near term. The RSI has turned lower whilst the Stochastics which had been looking to break higher have also stuttered. If today’s candle is also negative then the pressure will certainly be mounting. The hourly chart shows the price now settling down below the old range which now means that the old range supports around $1.5530/$1.5560 now become near term resistance. There is no absolute breakdown in the hourly momentum indicators yet which suggests there is a certain amount of consolidation underway. However the 61.8% fib level at $1.5470 and support at $1.5450 could come under pressure today and if they do it would suggest the bears are beginning to mount a charge once more.
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