Simple Moving Average(SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- Cable is setting up a range between 1.6345, and 1.6215. You can also argue since the lows have risen, that it is an ascending triangle, giving this setup bit more bullish bias, especially with the previous trend in the medium term being bullish since late December 2010.
- The downside target for a break below 1.6215 (I would look for 1.62 to break), is a pattern breakout projection to 1.6085. In this scenario, the RSI in the 1H chart should confirm by breaking below 30.
- Note in the 4H chart that this projection targets the 78.6% retracement area, just below a rising trendline, and also in meeting with SMA 200.
- A break below this SMA 200 with RSI breaking below 40 would suggest a reversal from the rally that started in December.
- A correction to the rally can target the 1.5750-1.58 area. Below 1.57, we can consider the 1.54 low.
- The upside fo a clean break above 1.6345 is a rally towards 1.6450. A break above 1.65 targets the 1.69-1.70 resistance zone.
Will the Cable show bullish momentum, or has it lost it within context of a ranging market? We would love to hear what you think.