I'm looking for weakness in Cable to get long, just like I'm looking for weakness in the SP-500 index to get long. Daily indicators are still on buy, but when I look at the hourly chart it shows that this move up has either finished or is near completion before a move down.
The chart is showing a completed 5 wave move off the 1160 lows, which means a retrace should be followed by at least one more 5 wave move up, if not more. Just counting 5 waves up doesn't make me bearish, I need to see some confirmations. I'll start with the ADX on the hourly chart.
The circle is showing the hourly ADX has rolled over, indicating the rally is exhausted or near exhaustion. The +DI has also put in a negative divergence to price. Risk takers can short right when the ADX prints a lower high than the previous hours and place a stop at the price high of the high ADX tick. A less risky entry is to wait until the ADX closes below the 40 line. Let's see if there's more confirmations.
The Elliott Wave Oscillator was also showing bearish divergence during the new price highs. So when we put these thoughts together with the Cable charts they seem to be saying near term equity weakness followed by a strong move upward.
AUD/USD is also showing bearish action: