16/12/09 FRIDAY 08:16+1GMT (edited untill 08:18)
EARLY MORNING REPORT
Yesterday we saw a big liquidation started at highest GB close for December (27046 made by 12.06 pit session period E): note that GB high tagged exactly this reference.
The liquidation continued with preUS session: note preUS high tagging exactly the monthly breakeven level at 2673.
Then eventually pit session continued it down to round 2550 (tagged again by pit low): note the perfect "b" shape of the composite profile preUS+pit US that is a confirmation of the liquidation developed yesterday.
Now, all the action we have seen in the last 2 days starting from 12.06 high looks like a liquidation but this does not mean it cannot continue or even morph into something bigger. Note also that yesterday liquidation in cable had a substantial relationship with the short covering experienced in USDX: if USD wants to eventually establish a good high above current weak "all time" high (it is weak because it has been established by a non pit session) then cable could also follow it continuing with current action downside.
Note that current Tokyo session developed below yesterday GB session low 2616 and is currently building a new gap downside for upcoming GB session: if this will eventually happen and if this new possible gap will not be retraced quickly we could have continuation downside.
So, the major references for today are the same of yesterday: the monthly breakeven at 2673 and the weekly breakeven at 25122. But we could add to them the new references builded yesterday: yesterday GB high at GB highest close for December at 27046, the weak pit low at 2548 (note also that as written yesterday it is a bounce exactly at 25493 that is the half back of the entire move downside from 09.22 to the "all time" low), the remaining portion of the DOUBLE PIT PASS GAP down to 25226.
The major composite pocs are at 2730 and 2612 (both above current price location) and 24169 far below current price location.
EARLY MORNING REPORT
Yesterday we saw a big liquidation started at highest GB close for December (27046 made by 12.06 pit session period E): note that GB high tagged exactly this reference.
The liquidation continued with preUS session: note preUS high tagging exactly the monthly breakeven level at 2673.
Then eventually pit session continued it down to round 2550 (tagged again by pit low): note the perfect "b" shape of the composite profile preUS+pit US that is a confirmation of the liquidation developed yesterday.
Now, all the action we have seen in the last 2 days starting from 12.06 high looks like a liquidation but this does not mean it cannot continue or even morph into something bigger. Note also that yesterday liquidation in cable had a substantial relationship with the short covering experienced in USDX: if USD wants to eventually establish a good high above current weak "all time" high (it is weak because it has been established by a non pit session) then cable could also follow it continuing with current action downside.
Note that current Tokyo session developed below yesterday GB session low 2616 and is currently building a new gap downside for upcoming GB session: if this will eventually happen and if this new possible gap will not be retraced quickly we could have continuation downside.
So, the major references for today are the same of yesterday: the monthly breakeven at 2673 and the weekly breakeven at 25122. But we could add to them the new references builded yesterday: yesterday GB high at GB highest close for December at 27046, the weak pit low at 2548 (note also that as written yesterday it is a bounce exactly at 25493 that is the half back of the entire move downside from 09.22 to the "all time" low), the remaining portion of the DOUBLE PIT PASS GAP down to 25226.
The major composite pocs are at 2730 and 2612 (both above current price location) and 24169 far below current price location.
Ubi maior minor cessat