RENEWABLES: CWE Morning Wind Forecast

• RES 4: 5575.00 High Mar 3 and a major resistance (cont) 
• RES 3: 5526.00 High Mar 19 / 20 (cont)
• RES 2: 5486.00/88.00 High May 20 and a bull trigger / High Jul 10
• RES 1: 5344.79/5449.00 50-day EMA / High Jul 27   
• PRICE: 5279.00 @ 07:31 BST Aug 4 
• SUP 1: 5173.01 3.0% 10-dma envelope
• SUP 1: 5166.00 Low Aug 1
• SUP 3: 5138.00 High Apr 30 
• SUP 4: 5078.00 Low Apr 30  

The trend condition in Eurostoxx 50 futures faltered Friday, with short-term weakness resulting in a break of the bear trigger. Having shown below 5194.00, the Jun 23 low, the April 30 hi/lo range at 5078-5138 becomes the area of downside interest. For bulls, a resumption of gains would refocus attention on 5486.00, the May 20 high. It has recently been pierced, a clear breach of it would resume the bull cycle.                

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance 
• RES 2: 121.73 High Jun 13 and the bull trigger 
• RES 1: 121.62 High Aug 4
• PRICE: 121.43 @ 07:30 BST Aug 4
• SUP 1: 119.59 Low Jul 25 and key short-term support         
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The primary trend condition in BTP futures is unchanged, it remains bullish and recent weakness appears to have been corrective. A doji candle on Jul 25 highlights a potential bullish reversal. A continuation higher would open 121.73, the Jul 13 high and a bull trigger. Clearance of this latter level would confirm a resumption of the uptrend. Key short-term support has been defined at 119.59, the Jul 25 low.              

• RES 4: 93.13 76.4% retracement of the Jul 1 - 18 bear leg     
• RES 3: 93.00 Round number resistance
• RES 2: 92.83 1.0% 10-dma envelope
• RES 1: 92.77/79 Intraday high/High Jul 4
• PRICE: 92.68 @ Close Aug 4
• SUP 1: 91.86 20-day EMA  
• SUP 2: 91.44/08 Intraday low / 18 and the bear trigger
• SUP 3: 90.97 76.4% retracement of the May 22 - Jul 1 bull leg  
• SUP 4: 90.59 Low May 29       

Gilt futures traded higher again Monday, building on the gains posted through Friday’s sharp rally. This marks an acceleration of the current bull cycle - with prices breaching resistance at 92.15, the Jul 22 high as well as 92.74, the 61.8% retracement of the Jul 1 - 18 bear leg. The 76.4% retracement is at 93.13. On the downside, key support and the bear trigger has been defined at 91.08, the Jul 18 low.