Cable broke below trendline support at 1.5130 and now we see the market trading lower.
We would be looking at the sellers taking the reins and driving us lower for 1.5030/20. This is excellent support and sellers may wish to take profits here. Buyers are expected to come in and defend this support and they will try their hardest and hang on to long positions unless the sellers break below 1.4995.
If they do break down below 1.4995 then the buyers should run for cover...which will help the sellers cause as they rush for the next support levels of 1.4965 and possibly 1.4920/00. The technical indicators are ripe for a move lower and it is a case of buyer beware today, going into tomorrow.
Any bounce from current levels should reach the hold below 1.5140/45 which is where our trendline rests today. However, if wse do break 1.5145 we are looking limited to the 38.2% med term fib located at 1.5171 and sellers should be in the market once more at these higher levels. As we closed below this trendline last night...and have been unable to break above it this morning if we do stay below here sellers will take this as a sign of weakness and break any barrier set by the buyers until reaching stated support levels.
" width="994" height="605" />
Disclaimer: This report is issued by and on behalf of Charmer Charts Ltd. No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realised. This report is designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives. This report is issued without regard to the recipient’s specific investment objectives and the value of any security, or the income derived from it, may fluctuate. Certain securities and/or transactions give rise to substantial risks and are not suitable for all investors. Investors must undertake independent analysis with their own legal, tax and financial advisers and reach their own conclusions regarding the economic benefits and risks of the security described herein and the legal, credit and tax aspects of any anticipated transaction. Where a security is denominated in a currency other than the local currency of the recipient, changes in exchange rates may have an adverse effect on the value of the security. Past performance is not necessarily a guide to future performance. Charmer Charts Ltd, its Officers, employees and affiliates may have a financial interest in the security or securities described in this report or otherwise buy, make markets in, hold trade or sell any security or securities described herein or provide services to issuers discussed herein. The security or securities mentioned herein may not be eligible for sale in some jurisdictions and may not be suitable for all types of investor. This report is only intended for issue to Professionals; it is not intended for issue to Retail Clients. This report is strictly confidential and is intended for the named recipient or recipients only. It may not be circulated or copied to any other party without the express permission of Charmer Charts Ltd. All rights reserved. This report complies with Charmer Charts Ltd Policy on the management of conflicts of interest in research. A copy of this Policy is available on request from Charmer Charts Ltd Compliance Department. Charmer Charts Ltd.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.