Sunday, November 22, 2009
Cable: Wait For Retracement Or Below 38.2%
After making a higher high from the previous week and formed double top formation, Cable broke the trendline/target from my previous post and touched 5th Nov low before closing at 1.6500. I think the pair will definitely test this month low at 1.6261 near 50% Fib level and the another support trendline.
I am anticipating 2 scenario of retracement toward the broken trendline: a lower low to 38.2% level at 1.6430 first or straight retracement to test the broken trendline near 23.6% level at 1.6601. The third scenario is a smooth move to 1.6300 area. So, I will enter short near 1.66 if Cable retrace or below 38.2% Fibonacci at 1.6430, 70 pips from current price.