Cable saw heavy selling overnight on the 38.2 fib at 1.55500, this level could be seen as the wave 4 in this recent bear trend. However the 1:1 (Green) has been overbalanced and this is a strong indication that the current down trend has changed.
The 38.2 Fib is now the level of most importance in Cable.
The bulls are still buying dips in Cable with the 1:1 (Purple) at 1.53940 attracting solid buying interest in late NY after the heavy sell off, the stochastic was also in oversold territory at the time adding weight to the support level.
If this 1:1 (Purple) breaks the bears will take back control of this market.
* A 1:1 refers to a current correction being equal in length to a prior correction
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