BRENT TECHS: (N5) Testing Resistance

Ratings action of note on Friday:

• Fitch affirmed Spain at A-, Outlook Positive.
• Fitch affirmed Switzerland at AAA, Outlook Stable.
• S&P affirmed Hungary at BBB-, Outlook revised to Negative from Stable).
• S&P upgraded Italy to BBB+; Outlook Stable.
• Morningstar DBRS confirmed Lithuania at A (high), Stable Trend
• Morningstar DBRS confirmed Malta at A (high), Stable Trend.

• RES 4: $3347.7 - 1.00 proj of the Feb 28 - Apr 3 - Apr 7 price swing   
• RES 3: $3300.0 - Round number resistance
• RES 2: $3291.8 - 1.00 proj of the Feb 28 - Apr 3 - Apr 7 price swing   
• RES 1: $3245.5 - High Apr 11        
• PRICE: $3229.7 @ 07:18 BST Apr 14 
• SUP 1: $3045.1 - 20-day EMA  
• SUP 2: $2956.7/2960.9 - Low Apr 7 / 50-day EMA 
• SUP 3: $2880.3 - Low Mar 10 
• SUP 4: $2832.7 - Low Feb 28 

The trend condition in Gold remains bullish and last week’s rally confirms and reinforces this condition. The yellow metal has traded through $3167.8, the Apr 3 high, to resume the primary uptrend and trade to fresh all-time highs. Moving average studies are unchanged, they remain in a bull-mode position highlighting a dominant uptrend. Initial firm support lies at 3063.4, the 20-day EMA. Sights are on 3291.8, a Fibonacci projection.

• RES 4: 120.12 High High Mar 4     
• RES 3: 119.31 Low Mar 4 and a gap high on the daily chart   
• RES 2: 119.07 High Apr 4 and the bull trigger  
• RES 1: 118.37 High Apr 11           
• PRICE: 118.10 @ Close Apr 11  
• SUP 1: 117.28/116.06 Low Apr 10 / 9 and the bear trigger       
• SUP 2: 115.75 Low Mar 14 and the bear trigger     
• SUP 3: 115.53 0.764 proj of the Feb 28 - Mar 14 - Apr 4 price swing  
• SUP 4:  115.00 Round number support    

BTP futures rallied sharply higher from last Wednesday’s low. However, the latest move down highlights a potential reversal of the Mar 14 - Apr 4 bull cycle. If correct, the move down exposes key support at 115.75, the Mar 14 low and a bear trigger. A break of this level would confirm a resumption of the medium-term downtrend. Initial firm resistance to monitor is 119.07, the Apr 8 high. Clearance of this level would be a bullish reversal development.