i think cable should be heading up now for a retracement. i went ahead with a long and will lock profit when the gap is nearly closed. i will set the rest of my longs to B/E because i believe we might get more upwards movement this week. price will reverse downwards targeting 1.900x-1.89xx (somewhere at or around weekly 200sma and 78.6 fib) or even lower to 1.86xx (61.8) later this week or next week (assuming the strength of the bear we saw last week). if those low levels are broken we are looking at a VERY strong trend reversal that could reach well below 1.8.
i've stated here before the behavior of some pairs when bouncing from 127.2 fibo. they either bounce back from 78.6 or 68.1 targeting 161.8 OR completely reverse if 61.8 is taken out.
i believe our key level here is 1.95xx (100% fibo). If broken upwards on a weekly level, then the resumption of the bullish movement upwards would be due, potentially taking out the previous highs. however, that's a low possibility right now since weekly CCI is pretty bearish and the -100 CCI level was taken out badly. on the other hand, CCI says we're due for a retracement since it's at 127.2 fibo (yes fibos do work for CCI ) but that doesn't mean it's the bottom of course.
i believe these are the potential tops for cable:
1.92xx
1.95xx
on the daily level:
CCI 161.8 (potential temporary bottom, but not necessarily), it might just signal a retracement just like the weekly 127.2 i stated earlier.
fibo fan was also hit with this gap (i was wondering why price stopped before it was hit last week, but i guess the gap here made me feel better )
a 23.6 fib retracement is at 1.9350 (the level that acted as TOUGH support and turned resistance), and yes, that's my second target after closing the gap.
the only think not supporting my decisions here and what's worrying me is the daily/weekly momentums (pointing down, maybe because of the gap?)
good luck everyone! and trade at your own risk!
i've stated here before the behavior of some pairs when bouncing from 127.2 fibo. they either bounce back from 78.6 or 68.1 targeting 161.8 OR completely reverse if 61.8 is taken out.
i believe our key level here is 1.95xx (100% fibo). If broken upwards on a weekly level, then the resumption of the bullish movement upwards would be due, potentially taking out the previous highs. however, that's a low possibility right now since weekly CCI is pretty bearish and the -100 CCI level was taken out badly. on the other hand, CCI says we're due for a retracement since it's at 127.2 fibo (yes fibos do work for CCI ) but that doesn't mean it's the bottom of course.
i believe these are the potential tops for cable:
1.92xx
1.95xx
on the daily level:
CCI 161.8 (potential temporary bottom, but not necessarily), it might just signal a retracement just like the weekly 127.2 i stated earlier.
fibo fan was also hit with this gap (i was wondering why price stopped before it was hit last week, but i guess the gap here made me feel better )
a 23.6 fib retracement is at 1.9350 (the level that acted as TOUGH support and turned resistance), and yes, that's my second target after closing the gap.
the only think not supporting my decisions here and what's worrying me is the daily/weekly momentums (pointing down, maybe because of the gap?)
good luck everyone! and trade at your own risk!