Lock's Cable Corner

There are almost 240 pip from current price location (around GB 2019 high) and last week HB close (equal to 2019 GB close): and these levels as I wrote earlier are very psychological

Now the only support to avoid a reversal is 34145. If it will not work back to the mean, if it will work new test upside.

it is GB September highest GB close (previous highest 2020 GB close): if not reached or if accepted, new test upside. If reached and acceptation below it, back to the mean..

And this, again, is market generated information at work: failure above very psychological level and back to the mean. Now let's see, because in order to reverse completely, we need acceptation below 34145. If not, again, new test upside.

Note F period low at HB 3408: weak level

34145 working as resistance now. Let's see if it is strong enough or not.

failure below 34145 and retest upside

And F period, again, is an inside one: new opportunity here. Its low is at HB 3408: take note.

Monitor for possible poc migration higher. It's the only thing that can avoid a substantial liquidation and let GB use the last two periods for a spike test upside.

Poc migrated higher and in the last period it attempted a spike... Overall I do not trust this action (from Tokyo). See you tomorrow or late in the pit session.

All liquidated downside, including all action upside of Tokyo session...

And now a very very interesting thing: the triple pass gap 33675-3377 is above current price location- If price will remain here or continue lower tomorrow we can have a 4 pass GB gap in that zone. That, in my records, is a non existing data in all cable history.

I mean it could be a first time in everything but it is extremely improbable. So ...

33475 Pit December open

So it worked as resistance but: note that 3351 is current HB and price tagged it. Take note as you surely did this morning during GB session (when I wrote about GB HB). And add it to the GB triple gap at 33675-3377....

Now, 32555 is Friday Pit high (base of the double gap downside and of the weekly gap upside) If it want to go there to fill it good. But always remember what we are leaving upside.

3323 is November Pit close (unch): it stopped the Pit liquidation earlier. Only acceptation below it can let this thing morph into something more serious downside. If not, that level will stop pit action again.

and 3323 stopped Pit action downside again...

The GB situation:

1. a monthly trend upside with an attempted rally above October inside month (GB breakeven 3150)
2. a weekly balance where the last week took out previous 3 weeks lows and interrupted the weekly trend upside.
3. a daily trend downside with the last three sessions in a one timeframing action downside.

Overall we are in a balance environment.

All the price zone from GB Friday high 3290 to yesterday GB low 33805 is a gap.
Inside this zone we have a double pass gap from 33325 to 3377 and a triple pass gap zone at 33675-3377

Currently price is below the triple pass zone 33675-3377: if this will be the situation at GB open we will see that zone morph into a 4 pass gap: and this is something that does not exist in my cable data history. As I wrote it could be always a first time, but it is extremely improbable that such an area will be left clean without filling during a GB session. It can also last for some time, but, at least in my opinion, it should not resist for a long period of time.

If instead Tokyo will somehow manage to go higher and let GB open above that area, in that case we will open above a triple pass gap: it is still rare to leave in place without filling such an area, but at least it occurred before.

But the situation is even more complicated as downside we also have a double pass Pit gap at 32555-3264 that is included in a more wide pit gap zone (single pass) from 32555 to yesterday Pit low 3309: so if GB should get rid of that triple pass at 33675-3377, Pit can be forced to come back down to clean its own gap zone.

Now, it is only a double pass zone, so we have a lot of cases of double pass gaps left in place for months. The problem in this case is that this particular gap is a weekly one and a total price one too. I mean: no market participants filled that zone (Tokyo, Sydney, GB and Pit) and this simple fact make this zone very attractive.

So one of the possibilities I have in mind is: GB manage somehow to clean the triple pass at 33675-3377, then Pit will try to fill the weekly gap down to 32555. It can be also the opposite by the way and this will let the triple gap morph in to a 4 pass gap, at least for sometime, before to be eventually filled.

And then there is the third option: no filling of the triple gap and total liquidation leaving that zone as a 4 pass gap. I will not bet on the most improbable of these three options. But I'll carry forward also this extreme possibility.

The gap upside from Friday GB high 3290 has been filled: we left upside a notable gap zone up to 3377-33805.

We have two options here: continue lower in order to let Pit US fill its own double gap at 32555-3264 and tomorrow or next days GB will come back upside to eventually fill its own 4pass gap (up to 3377) or we can see now GB reverse upside to fill its own gap up to 3377-33805 and then, eventually wait for a new pit action downside today or next days to take out 32555-3264

C can be an inside period. If so balance rules will apply. It can help us to understand if we eventually can reverse upside or continue lower. If upside 3377 is target. If downside , we can imagine to see pit open around 3250 or somewhere close to its pit double pass gap.

I consider this action a personal victory, not only a net profit. I think I've been the only one today to stress the importance of the gaps situation, their limits and the possible occurrences at any moment in time. And it's also a great pleasure for me to had the possibility to share with my loyal followers all the information that I've been able to get from this market.

From C period low failure to the top of current upside action there are 70 pips. We had a reason to place a long and we had a place to set our stops. Now, I already scaled out 3/4 of my position and nobody can affirm that 3377 will be taken out today. Is clearly a possibility, but considering the upcoming preUS and Pit sessions there's no shame to take what you get and wait.