CABLE - Gradual gains to extend
16th June 2015
A sequence of 3 lower CABLE highs ended last week. The preceding week’s stalling at a 50% correction level proved crucial and as buying became more pronounced. In fact gains of almost 3 big figures turned weekly sentiment clearly positive, especially with the market bought at higher levels on each of the last 6 days and breaking up through the 13/100/200 day moving averages.
In addition, the last 3 days have seen setbacks find fresh buying interest at a Marabuzo created last Wednesday and prices are now moving towards the top of a gradually rising Keltner channel. A ‘hugging’ of the top of a Keltner channel is very often a sign of a strongly trending market, so we look for a CABLE acceleration if/when that takes place.
So, we look for a test of 1.5641 to act as confirmation with a move through that point then exposing sentiment to 1.5700 and 1.5751, the 4 week top. Only below 1.5467 negates this positive scenario.
