BRENT TECHS: (H6) Support To Monitor Lies At The 50-Day EMA

• RES 4: 121.33 High Oct 21 and a key resistance area 
• RES 3: 121.37 High Nov 13 
• RES 2: 121.24 High Nov 26 
• RES 1: 120.17/77 Low Nov 20 / High Dec 3   
• PRICE: 120.08 @ Close Dec 16
• SUP 1: 119.54 Low Dec 12           
• SUP 2: 119.12 1.764 proj of the Nov 13 - 20 - 26 price swing 
• SUP 3: 118.00 Round number support
• SUP 4: 118.84 2.000 proj of the Nov 13 - 20 - 26 price swing 

Gains in BTP futures appear corrective. Last week, the contract traded through an important support at 120.17, the Nov 20 low. This highlights the fact that a bearish phase remains in play, signalling scope for a deeper retracement. A resumption of weakness would open 119.12 next, a Fibonacci projection. The contract is oversold and the latest corrective recovery is allowing this set-up to unwind. Initial firm resistance 120.17, the Nov 20 low.

• MNI: UK NOV CPI 3.25% Y/Y (MNI MED 3.5%, BOE 3.41%, OCT 3.56%)
• UK NOV CORE CPI 3.18% Y/Y (MED 3.4%, OCT 3.38%)
• UK NOV SERVICES CPI 4.39% Y/Y (MED 4.53%, BOE 4.5%, OCT 4.49%)
• UK NOV CORE GOODS CPI 1.08% Y/Y (MED 1.43%, OCT 1.47%)
• UK NOV FAT CPI 4.16% Y/Y (MED 4.6%, OCT 5.16%)
• UK NOV ENERGY CPI 1.85% Y/Y (MED 1.78%, BOE 1.3%, OCT 1.84%)

• MNI: UK NOV PPI OUTPUT +0.1% M/M, +3.4% Y/Y
• UK NOV PPI INPUT +0.3% M/M, +1.1% Y/Y