POWER: French Nexans Stays Cautious on Delayed Great Sea Interconnector

Recent weakness in WTI futures appears to be a flag formation - a bullish continuation pattern. This suggests that a bullish corrective cycle remains intact for now. Price has recently traded through the 50-day EMA, at $60.87, signalling scope for a stronger recovery. Note too that resistance at $62.34, the Oct 8 high, has been pierced. A clear move through it would expose key resistance at $65.77, Sep 26 high. The bear trigger is $55.96, the Oct 20 low. The downleg in Gold that started Oct 20 appears to have been a correction and has allowed an overbought condition to unwind. Price remains above a key support area at the 50-day EMA, at $3880.7. Clearance of this EMA would strengthen a short-term bear theme and signal scope for a deeper retracement. Initial resistance is at $4161.4, the Oct 22 high. A  stronger recovery would refocus attention on $4381.5, the Oct 20 high and bull trigger.

• WTI Crude up $0.64  or +1.07% at $60.38
• Natural Gas up $0.19  or +4.43% at $4.506
• Gold spot up $79.14  or +1.98% at $4080.24
• Copper up $8.7  or +1.76% at $504.45
• Silver up $1.6  or +3.31% at $49.9061
• Platinum up $31.34  or +2.03% at $1577.26

A medium-term bull trend in Eurostoxx 50 futures remains intact and recent weakness is considered corrective. Price has managed to find support below two important price points; the 50-day EMA, at 5576.77, and 5571.50, the base of a bull channel drawn from the Aug 1 low. A clear break of both levels would strengthen a bear theme and highlight a stronger reversal. The bull trigger is 5742.00, the Oct 29 high. The trend condition in S&P E-Minis remains bullish and the pullback since the Oct 30 high appears corrective. The contract has managed to find support below the 50-day EMA, currently at 6710.28 and a key support. Friday’s activity also highlights a potential reversal signal - a bullish doji candle. This defines key support at 6655.50, the Oct 7 low. A continuation higher would signal the end of a correction and open 6953.75, Oct 30 high and bull trigger.

• Japan's NIKKEI closed higher by 635.39 pts or +1.26% at 50911.76 and the TOPIX ended 18.57 pts higher or +0.56% at 3317.42.
• Elsewhere, in China the SHANGHAI closed higher by 21.041 pts or +0.53% at 4018.597 and the HANG SENG ended 407.23 pts higher or +1.55% at 26649.06.
• Across Europe, Germany's DAX trades higher by 410.03 pts or +1.74% at 23978.42, FTSE 100 higher by 83.98 pts or +0.87% at 9766.47, CAC 40 up 110.91 pts or +1.4% at 8061.11 and Euro Stoxx 50 up 94.47 pts or +1.7% at 5661.04.
• Dow Jones mini up 206 pts or +0.44% at 47292, S&P 500 mini up 66 pts or +0.98% at 6820, NASDAQ mini up 387.25 pts or +1.54% at 25555.

Nothing in the way of meaningful headline flow to explain the recovery from lows in wider core global FI markets.

• It looks like cross-market cues driving outperformance in peripheral EGBs & OATs, with equities rallying, pulling wider core global FI off worst levels of the day.
• 10-Year OAT/Bunds now 2bp narrower on the session, with French paper outperforming EGB peers.