Guest Commentary: Cable is about to get Nasty Again!
* We have been selling a succession of rallies for a possible acceleration of the downward ratchet.
* There should be no more significant corrections now until momentum increases.
* A loss of both 1.5420 (equality) and the 1.5235-70 medium term support should provide that momentum.
Cable is very dangerous. Given the continued sequence of downtrends and upside correction it is possibly about to get very Nasty.
Having corrected 50% to 1.5775 and trended lower, the subsequent rally to 1.5720 also appeared corrective. So what did we need following the 5 wave trend sequence to 1.5460? Yes we got the 38.2% beyond 1.5560 the c=a at 1.5570 and the Andrews pitchfork resistance just short of the ideal 50%. Very dangerous.
We are very short and very bearish for a loss now 1.5460 to encourage acceleration beyond the 1.5420 equality target from 1.5775 and indeed 1.5235-70 to confirm the Nasty Trade II.
1.5580…should now cap or risk a complex upward ratchet to 1.5620 first..so our short term stops sadly stay above 1.5720.
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