SONIA OPTIONS: Call Fly buyer

A bull wave in WTI futures remains intact and the sharp pullback on Mar 23 proved to be a correction. A fresh short-term cycle high yesterday reinforces the bull theme. A key support zone to monitor is the area between $90.76 - $79.50, the 20- and 50-day EMA values. A clear break of this support zone is required to signal a possible trend reversal. On the upside, sights are on $113.41, the Mar 9 high and bull trigger. A corrective cycle in Gold remains in play and the metal is holding on to its latest gains. Key near-term resistance is at $4801.1, the 50-day EMA. A clear break of this average is required to signal scope for a stronger recovery. This would open $4914.9, a Fibonacci retracement point. For bears, a reversal would mark the end of the correction and signal scope for a move towards the bear trigger at $4099.2, the Mar 23 low.

• WTI Crude down $2.46 or -2.43% at $98.88
• Natural Gas down $0.01 or -0.35% at $2.872
• Gold spot up $57.76 or +1.24% at $4726.63
• Copper up $3.85 or +0.69% at $565.5
• Silver down $0.76 or -1.01% at $74.4285
• Platinum up $11 or +0.56% at $1964.47

The NTMA has confirmed there will only be one bond auction in Q2 on Thursday 14 May. The auction details will be announced on Monday 11 May.

The trend condition in EuroStoxx 50 futures remains bearish and - for now - short-term gains are considered corrective. Note that the trend has been in oversold territory recently and a stronger recovery would allow this set-up to unwind. Key pivot resistance is seen at 5729.44, the 50-day EMA, where a clear break is required to signal a possible reversal. For bears, a resumption of weakness would open 5277.64 next, a Fibonacci projection. A strong rally in S&P E-Minis yesterday highlights the start of a corrective phase. Note that a correction is allowing an oversold trend condition to unwind. Initial firm resistance to watch is 6660.09, the 20-day EMA. A clear break of this average would signal potential for an extension towards 6793.69, the 50-day EMA and a key area of resistance. The bear trigger has been defined at 6753.25, the Mar 31 low.

• Japan's NIKKEI closed higher by 2675.96 pts or +5.24% at 53739.68 and the TOPIX ended 173.04 pts higher or +4.95% at 3670.9.
• Elsewhere, in China the SHANGHAI closed higher by 56.691 pts or +1.46% at 3948.552 and the HANG SENG ended 505.89 pts higher or +2.04% at 25294.03.
• Across Europe, Germany's DAX trades higher by 511.64 pts or +2.26% at 23191.14, FTSE 100 higher by 171.98 pts or +1.69% at 10348.5, CAC 40 up 155.34 pts or +1.99% at 7972.28 and Euro Stoxx 50 up 134.99 pts or +2.42% at 5704.72.
• Dow Jones mini up 236 pts or +0.51% at 46818, S&P 500 mini up 34.5 pts or +0.53% at 6604.75, NASDAQ mini up 174 pts or +0.73% at 24086.25.