Cable broke out of the triple-top that represented the entire 2012 range today.
After the squeeze to 1.6381, it has been straight downhill to 1.6249.
Okay, it’s not quite epic but it’s definitely a chart that should have your attention.
It reminds me of USD/CAD in 2008/09 and one of the biggest false breakout shakeouts I can remember.
Traders like to be heros on days like today and run with the big breakout but it’s often better to wait for the dust settles. If cable drops again tomorrow, sell. If it rebounds above 1.6315, buy. There will be plenty of time to make money.
