Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius


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Wednesday, December 7, 2011

CABLE head and shoulders or Double Bottom?

Like many indices it seems that most are universally BEARISH on cable, euro and Aussie dollar vs dollar.

Looking at the daily CABLE (£/$) chart

The BEAR case (head and shoulders) is clearly outlined and would target 1.40 or lower

However there is pretty strong support mid term at the 1.53 level..and we may have already bottomed or one more dip lower before we rally.  Also we seems to have broken out of a falling wedge..(bullish)

Be prepared

Sometimes it pays to look at a longer time frame

Looking at the WEEKLY chart

We can see since 2009 a large triangle is playing out which looks like an ASCENDING TRIANGLE.
We are also near the rising trend line forming the bottom of the triangle and resistance is around 1.65

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