MNI: FRANCE NOV CONSUMER SENTIMENT 83

• RES 4: 106.25 High Sep 12
• RES 3: 105.34 High Sep 22
• RES 2: 103.60 Low Sep 20
• RES 1: 102.45 High Sep 23
• PRICE: 101.47 @ 08:26 BST Oct 26
• SUP 1: 97.80/95.82 20-day EMA / Low Oct 21
• SUP 2: 94.82/92.66 Low Oct 17 / 14
• SUP 3: 90.99/90.38 Low Sep 28 / Low Oct 12 and the bear trigger
• SUP 4: 90.00 Psychological round number

Gilt futures are holding the bulk of recent gains, confirming the extension of the current bull cycle. Price has recently cleared the 20-day EMA and the continuation higher this week has resulted in a break of key resistance at 100.92, the Oct 4 high. The breach of this level strengthens bullish conditions and opens 102.45 next, the Sep 23 high. Initial firm support has been defined at 95.82, the Oct 21 low.

• RES 4: 108.010 High Sep 13
• RES 3: 107.770 High Oct 4 and the reversal trigger
• RES 2: 107.180/360 High Oct 13 and key resistance/ High Oct 6
• RES 1: 106.964 20-day EMA
• PRICE: 106.825 @ 08:24 BST Oct 26
• SUP 1: 106.350 Low Oct 21 and the bear trigger
• SUP 2: 106.270 2.50 proj of the Aug 25 - Sep 1 - Sep 6 price swing
• SUP 3: 106.00 Round number support
• SUP 4: 105.800 Low Nov 2008 (cont)

The Schatz futures primary trend direction is down and the latest recovery is likely a correction. Last week’s move lower resulted in a break of support at 106.535, Sep 26 low. This has confirmed a resumption of the primary downtrend and maintains the bearish price sequence of lower lows and lower highs. The focus is on 106.270 next, a Fibonacci extension. Key short-term resistance has been defined at 107.180, the Oct 13 high.

On offer today:

• E2.0-2.5bln of the 1.75% May-24 BTP Short Term (ISIN: IT0005499311)
• E500-750mln of the 0.65% May-26 BTPei (ISIN: IT0005415416)
• E500-750mln of the 0.10% May-33 BTPei (ISIN: IT0005482994)

Timing: Results will be available shortly after the auction closes at 1000 BST / 1100 CEST.

See full preview in PDF below:

MNI Auction Preview Italy 221026.pdf