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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Friday, March 30, 2012


Cable looks like it is breaking out at 1.60, with some heavy resistance still at 1.6140; however if "everybody" is looking at the breakout we may see a "false" break up.

Strategy seems to be wait and see, a fall back through 1.60 could be a short; Many shorts probably will have covered and new longs initiated on the break above 1.60  = BULL TRAP?

Anyway the next major resistance is at 1.6140 so not far away; Another level one could short at

Looking at the chart we can see going back that between 1,60 and 1.6140 there is heavy congestion.

Also on the bigger picture, we could still be in the process of forming a large HEAD and SHOULDERS formation, significantly above 1,6165 would invalidate this pattern.

We can also see that recent price action seems to be forming a MEGAPHONE or BROADENING WEDGE, usually a BEARISH pattern. 

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