End-of-month asset rebalancing is expected to weigh on cable through the London Fix, with asset managers selling UK shares in order to buy US shares.
Nevertheless, I’m always looking for an opportunity to reinstate my cable long position and if the weekly trendline can hold firm, then I will do just that. According to my best-fit drawing, the trendline from 1.3500 through 1.4230 comes in near 1.5380. If this level is tested and holds (a low forms on a 2-hr chart) then I will reinstate my long-term cable long position. Best I practice what I preach and show some patience now!
