ITALY: PM Meloni: No Resignation, No Gov't Reshuffle

• RES 4: 122.04 High Feb 27  
• RES 3: 120.95 76.4% retracement of the Feb 27 - Mar 9 bear leg
• RES 2: 120.42 20-day EMA
• RES 1: 119.73 50.0% retracement of the Feb 27 - Mar 9 bear leg
• PRICE: 119.55 @ 07:15 GMT Mar 10
• SUP 1: 118.27/117.42 Low Mar 6 / 9       
• SUP 2: 117.01 1.618 proj of the Feb 27 - Mar 3 - 4 price swing 
• SUP 3: 116.68 1.764 proj of the Feb 27 - Mar 3 - 4 price swing 
• SUP 4: 115.60 2.236 proj of the Feb 27 - Mar 3 - 4 price swing

The sharp reversal higher in BTP futures from yesterday’s low highlights the fact that price action is set to remain volatile - for now. Despite the recovery, a bearish threat is present and the move higher is allowing an extreme oversold trend condition to unwind. Key short-term resistance to monitor is 120.42, the 20-day EMA. On the downside, a resumption of the bear leg  would pave the way for an extension towards 117.01 next, a Fibonacci projection.

TYK6 110.00 puts ~5.7K given at 0-09, with another ~1.1K trading on the follow.

• RES 4: 106.800 High Mar 3   
• RES 3: 106.727 20-day EMA  
• RES 2: 106.565 High Mar 6
• RES 1: 106.510 Intraday high 
• PRICE: 106.455 @ 07:06 GMT Mar 10
• SUP 1: 106.220/106.915 Low Mar 6 / 9 
• SUP 2: 105.896 1.618 proj of theMar 2 - 3 - 4 price swing 
• SUP 3: 105.819 1.767 projection of the Mar 2 - 3 - 4 price swing
• SUP 4: 105.695 1.767 projection of the Mar 2 - 3 - 4 price swing

Schatz futures have recovered from Monday’s low. For now, the move higher is considered corrective and this is allowing an extreme oversold trend condition to unwind. Short-term trend signals continue to highlight a bearish theme. A resumption of weakness would pave the way for an extension towards 105.896 next, a 1.1618 projection of the Mar 2 - 3 - 4 price swing. On the upside, initial firm resistance is seen at 106.727, the 20-day EMA.