SILVER TECHS: Bull Cycle Still In Play
- RES 4: $30.912 - 3.00 proj of the Oct 3 - 20 - Nov 13 price swing
- RES 3: $30.100 - Feb 2021 high and a key resistance
- RES 2: $30.000 - Psychological round number
- RES 1: $29.797 - High Apr 12
- PRICE: $28.522 @ 08:02 BST Apr 18
- SUP 1: $26.910 - 20-day EMA
- SUP 2: $25.405/328 - 50-day EMA / Low Mar 27
- SUP 3: $22.277 - Low Feb 28
- SUP 4: $21.928 - Low Jan 22 and a key support
Despite the pullback in Silver from last Friday’s high, the trend outlook remains bullish. Fresh trend gains last week and a bullish moving average set-up, reinforce the current positive outlook. The latest rally signals scope for a climb towards the $30.00 psychological handle. Initial firm support lies at $26.910, the 20-day EMA. A move lower in the metal would be considered corrective.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EQUITY TECHS: E-MINI S&P TECHS: (M4) Bulls Remain In The Driver’s Seat
- RES 4: 5322.11 3.0% Bollinger Band
- RES 3: 5305.35 2.0% 10-dma envelope
- RES 2: 5300.00 Round number resistance
- RES 1: 5257.25 High Mar 8 and the bull trigger
- PRICE: 5208.50 @ 06:48 GMT Mar 19
- SUP 1: 5168.27 20-day EMA
- SUP 2: 5057.80 50-day EMA
- SUP 3: 4994.25 Low Feb 13
- SUP 4: 4921.00 Low Jan 31
The trend condition in S&P E-Minis remains bullish and the contract remains closer to its recent highs. Fresh cycle highs reinforce current conditions and note that price action continues to highlight the fact that corrections remain shallow. This is an important bullish signal, reflecting positive market sentiment. Support to watch is 5168.27 the 20-day EMA. A clear break of this average would open 5057.80, the 50-day EMA. Sights are on 5300.00 next.
BTP TECHS: (M4) Watching Support At The 20-Day EMA
- RES 4: 121.65 2.618 proj of the Feb 22 - 26 - 29 price swing
- RES 3: 121.19 2.382 proj of the Feb 22 - 26 - 29 price swing
- RES 2: 120.65 High Dec 27 and the bull trigger
- RES 1: 120.28 High Mar 14
- PRICE: 118.78 @ Close Mar 18
- SUP 1: 118.46/33 20-day EMA / Low Mar 15
- SUP 2: 117.68 50-day EMA
- SUP 3: 116.15 Low Feb 22 and the bear trigger
- SUP 4: 116.00 Round number support
BTP futures have pulled back from their recent highs. A short-term bullish theme remains intact following the recovery that started on Feb 22, however, a clear break of support at the 20-day EMA - at 118.46 - would signal scope for a deeper retracement. This would open 117.68, the 50-day EMA and a key short-term support. Key resistance and the bull trigger is unchanged at 120.65, the Dec 27 high.
EUROZONE ISSUANCE: EGB Supply
The EU, Italy, Finland, Greece, Germany, Spain, France and Ireland are all still due to issue this week while Slovakia and Belgium held auctions yesterday. We pencil in estimated gross issuance for the week at E43.3bln, up from E23.1bln last week.
- The EU will hold a syndication on Tuesday to launch a new 25-year Green EU-bond maturing February 2050. We have pencilled in a transaction size of E5-7bln (pre-announcement we had pencilled in E7bln but see some downside risks given the syndication is single-trance and green).
- Italy has also released a mandate to launch a new long 10-year BTPei maturing May 2036. We expect a transaction on Tuesday and pencil in an auction size of E4-5bln. We had noted the potential for a new 10-year BTPei launch in the coming weeks but this week is earlier than we had expected.
- Also Tuesday, Finland will look to hold an auction for up to a combined E1.5bln of the on-the-run 5/10-year RFGBs: the 2.875% Apr-29 RFGB (ISIN: FI4000557525) and the 3.00% Sep-33 RFGB (ISIN: FI4000550249).
- Germany will confirm its Q2 issuance calendar on Tuesday at 10:00GMT / 11:00CET.
- Ireland will also confirm what it is selling at Thursday's auction at 10:00GMT: We expect this 10-year 2.60% Oct-34 IGB (ISIN: IE000LQ7YWY4) to be reopened alongside another IGB at this auction.
