CABLE – Trend remains negative for Q1
5th January 2016
…Our bearish forecast for Q4, following a strong decline in the preceding 3 months, was justified. Sellers continued to dominate, although with reduced momentum, after a limited profit taking bounce in October and our first downside target was met. Although Dec’s lows were not held and 5th down month from the last 6 and negative technical indicators, including RSI, keep the focus on the downside as we go into 2016.
Therefore, our CABLE call for Q1 is Bearish but leaving room to Sell a Rally to 1.5241, December’s top. The risk is 1.5498, November’s top, with an immediate target of 1.4565, last year’s low point. A move through that point then exposes sentiment to 1.4228, the low from 2010, or even towards 1.3503, the 2009 CABLE base.
