Deeper yet temporary setback likely for Cable
Early demand yesterday confirmed our positive view. But, for a second day in a row, cable was unable to sustain prices beyond the 200 day moving average. This time the failure translated into minor profit-taking losses.
Although the downside was limited, our studies suggest a deeper, though temporary, move is probable.
Management and risk description
A move to 1.4640 means the stop can be lowered to break even.
Entry: Sell in 1.4675/80 area and rally to 1.4704.
Stop: 1.4740 bid.
Target: 1.4640, 1.4602 or even 1.4560.
Time horizon: intraday, ends 1200 GMT, on Friday May 27
Testing the average
Non-independent investment research disclaimer applies. Read more