People tend to make everything more complicated than it needs to be.
I have been negative on cable since the ‘epic fail‘ on the first trading day of the year. In the days since, there have been a series of lower lows including today’s test of bids at 1.5970/75.
In general, a series of lower lows and lower highs is the most reliable indicator of a trend. When that trend begins after a failed breakout of a major triple top and in an economy that’s contracting, all the better.
The daily chart looks like it wants to go down and test the 200-day moving average at 1.5909 or the November low of 1.5825.
The one thing that makes me hesitant is the trendline since June. I don’t draw too many trendlines on charts because I’m not a big believer. At times, if a line has been tested 3-4 times I expect it to have some relevance but this one is simply from the June and July lows.
