EU HEALTHCARE: Novo Nordisk: Trumped (NOVOB; Aa3/AA/NR)

• RES 4: 92.30 High Aug 7
• RES 3: 92.06 High Aug 14      
• RES 2: 92.00 Round number resistance
• RES 1: 91.82 High Sep 11
• PRICE: 91.39 @ Close Sep 16
• SUP 1: 90.65 Low Sep 2
• SUP 2: 90.31/89.36 Low Sep 4 / 3
• SUP 3: 89.22 1.618 proj of the Aug 21 - 27 - 28 price swing 
• SUP 4: 89.00 Round number support   

A bull cycle in Gilt futures remains intact. A recent rally highlights a stronger corrective cycle and the contract is holding on to its gains. Note that the move higher is allowing an oversold trend condition to unwind. Price has breached initial firm resistance at 90.84, the Aug 28 and 29 high. A continuation higher would open 92.06, the Aug 14 high. On the downside, initial support lies at 90.65, the Sep 5 low.

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.81 76.4% retracement of the Aug 1 - 14 bear leg 
• RES 1: 148.17/149.14 High Sep 11 / High Sep 3  
• PRICE: 146.52 @ 06:54 BST Sep 17
• SUP 1: 146.21 Low Aug 14  
• SUP 2: 145.86 Low Jul 24
• SUP 3: 145.80 Trendline drawn from the Apr 22 low
• SUP 4: 145.40 50% retracement of the Apr - Aug upleg

Key short-term support to watch in USDJPY is 146.21, the Aug 14 low and a bear trigger. A break of this level would highlight a stronger bearish threat and highlight a range breakout. This would expose 145.40, a Fibonacci retracement. On the upside, clearance of 149.14, the Sep 3 high is required to reinstate a bullish theme. Note that moving average studies are in a bull-mode position and this continues to highlight a dominant uptrend.

• RES 4: 5568.00 High Mar 6
• RES 3: 5526.00 High Mar 19 / 20 (cont) 
• RES 2: 5522.00 High Aug 22  and a key resistance 
• RES 1: 5467.72 76.4% retracement of the Aug 22 - Sep 2 bear leg    
• PRICE: 5386.00 @ 06:36 BST Sep 17
• SUP 1: 5372.91/5292.00 50-day EMA / Low Sep 2 and key support
• SUP 2: 5280.00 Low Aug 7  
• SUP 3: 5250.02 76.4% retracement of the Aug 1 - 22 rally  
• SUP 4: 5166.00 Low Aug 1 and key support  

Eurostoxx 50 futures have recently traded through the 20-day EMA - a bullish development for now. The move higher undermines a recent bearish theme and signals potential for a climb towards 5522.0, the Aug 26 high and a bull trigger. On the downside, key support has been defined at 5292.00, the Sep 2 low. Clearance of this level is required to reinstate a bearish theme. For now, yesterday’s move down appears corrective.