SCHATZ TECHS: (M5) Bull Cycle Still In Play
- RES 4: 107.812 0.618 proj of the Mar 6 - Apr 7 - 9 price swing
- RES 3: 107.775 High Apr 7 and the bull trigger
- RES 2: 107.600 High Apr 30
- RES 1: 107.550 High May 7 and last Friday’s high
- PRICE: 107.340 @ 06:12 BST May 28
- SUP 1: 107.195/070 Low May 22 / 13 and the bear trigger
- SUP 2: 106.965 Low Apr 9 and a key support
- SUP 3: 106.928 61.8% retracement of the Mar 6 - Apr 7 bull cycle
- SUP 4: 106.830 Low Mar 27
The current bull cycle in Schatz futures remains intact. Resistance at 107.335, the May 12 / 20 high, has been cleared. The break signals a stronger reversal and exposes 107.550, the May 7 high. A clear breach of this level would strengthen a bullish theme. For bears, a resumption of the recent bear leg would instead signal scope for an extension towards 106.965, the Apr 9 low. The bear trigger has been defined at 107.070, the May 13 low.
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SCHATZ TECHS: (M5) Bull Cycle Remains In Play
- RES 4: 107.812 0.618 proj of the Mar 6 - Apr 7 - 9 price swing
- RES 3: 107.800 Round number resistance
- RES 2: 107.775 High Apr 7 and the bull trigger
- RES 1: 107.735 High Apr 22
- PRICE: 107.525 @ 06:13 BST Apr 28
- SUP 1: 107.425 Low Apr 23
- SUP 2: 107.358 20-day EMA
- SUP 3: 107.125 Low Apr 10
- SUP 4: 106.965 Low Apr 9 and a key support
Schatz futures maintain a firmer tone despite the latest pullback and sights are on 107.775, the Apr 7 high and bull trigger. The recent move down between Apr 7 - 9, appears corrective. Clearance of 107.775 would confirm a resumption of the uptrend and open 107.812, a Fibonacci projection. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend. Firm support to watch lies at 107.358, the 20-day EMA.
CHINA: Country Wrap: Authorities to Support Exporters.
- China authorities will continue to support for exporters impacted by tariffs and will show greater urgency to shore up the economy said policymakers in a press conference in Beijing today (source BBG)
- China will lower RRR and interest rates based on domestic and international economic situation, to ensure ample liquidity, PBOC Deputy Governor Zou Lan says at a briefing today stating that China will step up efforts to implement more proactive macroeconomic policies and make full use of moderately loose monetary policy. (source BBG).
- China's major bourses were mixed today with the Hang Seng barely gaining up +0.07% whilst the CSI 300 was flat. Shanghai was down -0.03% and Shenzhen -0.72%.
- Yuan Reference Rate at 7.2043 Per USD; Estimate 7.2843
- China’s bonds eked out gains today with the CGB 10YR at 1.65% (-1bp today)
LOOK AHEAD: UK Timeline of Key Events (Times BST)
| Date | UK | Period | Event |
| 28-Apr | 1100 | Apr | CBI Distributive Trades |
| 29-Apr | 0001 | Apr | BRC Monthly Shop Price Index |
| 29-Apr | 1040 | --- | BOE Ramsden At Innovate Finance Global Summit |
| 30-Apr | 1630 | --- | BOE Lombardelli At Economics Teacher Training Launch |
| 01-May | 0930 | Mar | BOE Lending & M4 |
| 01-May | 0930 | Apr | S&P Final Manufacturing PMI |
| 06-May | 0930 | Apr | S&P Global Services/Composite PMI (Final) |
| 06-May | 1400 | --- | BOE Breeden On Payment Infrastructure Panel |
| 07-May | 0930 | Apr | S&P Global/CIPS Construction PMI |
| 08-May | 1200 | --- | Bank Of England Interest Rate |
| 08-May | 1230 | --- | BOE Press Conference |
| 08-May | 1400 | Apr | Decision Maker Panel data |
| 09-May | 0940 | --- | BOE Bailey Keynote Address at Reykjavik Conference |
| 09-May | 1215 | --- | BOE's Pill At National MPC Agency Briefing |
| 12-May | 1530 | FQ2 | DMO likely to publish FQ2 consultation agenda |
