Monday, June 9, 2014

Cable bearish look

Cable's drastic bullish move which started on 21st March ended with more than 500pips at 1.6995.

 The price has since taken a correction to the downside with beautiful swings at good levels.

The present bearish move could still continue till 77.8% retracement of the bullish move at 1.6560-1.6600 before fresh bullish move could continue. 

If price penetrates below 1.6468, the bears might be preparing to take over.
Presently, price has formed an ABC zigzag Gartley pattern (50-61.8% fib-level) at a strong resistance formed by 2-diagonal trendlines. 

Any move from this level to the downside will suggest that Wave-3 is not yet completed ( at least its minimum projection).

Going by this thought, it's not bad to speculate that wave 3 could occur at 1.6560-1.6600 which is a magnetic zone for price due to different projections that converge there. 

A new buying interest should be expected there after we might have exhausted profits at different levels along the way.
A break above 1.6850 will make this scenerio invalid and might force price to resume the bullish run.

Perhaps the analytic chart below can explain better to you

Please let me know if this blog has been helping someone by your comments  and you can also contact me if you need a trading partner,mentor or fund manager

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