Cable rally hits the buffers but sellers should be
17 August 2009
The Technical Trader’s view:
MONTHLY CHART
We can see that there’s a long-term trading range well-established from the early 1990s.
And the market’s recent rally has driven it up to substantial resistance at the 1.050 low.
WEEK CHART
The struggle at that level is clear – a band of resistance looks to be in place 1.6802-1.7050.
(Equally we note that there was a double bounce from the lows adding great vigor to the rally.)
DAILY CHART
But this reveals that the market has just tip-toed up to the resistance band and pulled back.
Certainly the prior High Supports nearby at 1.6661 have been smashed – yet we are not that bearish because there is no clear REVERSAL structure in place – short-term.
So for the moment we are standing back awaiting short-term patterns that endorse the medium-term failure at the 1.7050-1.7450 band of resistance.
Mark Sturdy,
John Lewis
Seven Days Ahead
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