EUROSTOXX50 TECHS: Remains Above Last Week’s Low
- RES 4: 3774.00 High Jun 9
- RES 3: 3689.00 High Jun 10
- RES 2: 3584.00 High Jun 27 and a key resistance
- RES 1: 3504.00/3571.00 High Jul 8 / 50-day EMA
- PRICE: 3465.00 @ 05:51 BST Jul 13
- SUP 1: 3343.00 Low Jul 5 and the bear trigger
- SUP 2: 3321.30 50.0% retracement the major 2020 - 2021 upleg
- SUP 3: 3300.00 Round number support
- SUP 4: 3241.70 1.382 proj of the Mar 29 - May 10 - Jun 6 price swing
EUROSTOXX 50 futures continue to trade above 3343.00, the Jul 5 low. Short-term gains are still considered corrective and the primary trend direction remains down. Last week’s breach of support at 3384.00, Jun 16 low, reinforces bearish conditions and highlights a resumption of the broader downtrend, opening 3321.30, a Fibonacci retracement. Initial resistance is at 3504.00, the Jul 8 high. A break would signal scope for a stronger recovery.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUROSTOXX50 TECHS: (M2) Bearish Extension
- RES 4: 3888.00 High Apr 5
- RES 3: 3883.00 High Apr 21
- RES 2: 3857.00 High Jun 6 and key short-term resistance
- RES 1: 3738.70 50-day EMA
- PRICE: 3540.00 @ 05:49 BST Jun 13
- SUP 1: 3520.00 Low May 12
- SUP 2: 3466.00 Low May 10 and bear trigger
- SUP 3: 3458.90 76.4% retracement of the Mar 7 - 29 rally
- SUP 4: 3309.00 Low Mar 7 and major support
EUROSTOXX 50 futures have weakened again today as the contract extends the reversal from recent highs. The move lower last week and today, threatens the recent bull theme. The pace of the sell-off signals potential for weakness towards key support and the bear trigger at 3466.00, May 10 low. Key short-term resistance has been defined at 3857.00, Jun 6 high. Initial resistance is seen at 3738.70, the 50-day EMA.
BOJ: Addition To Bond Purchase Schedule
The Bank of Japan announces an addition to its bond purchase schedule for tomorrow after benchmark 10-Year JGB yield breached the upper end of its permitted -/+0.25% trading range.
- The BoJ will conduct additional purchases of Y500bn 5- to 10-Year JGBs on Tuesday, stepping up defence of its yield target.
- "The Bank will make changes in the auction schedule and amounts of outright purchases of JGBs as needed, taking account of market conditions."
GILT TECHS: (U2) Bear Leg Extends
- RES 4: 117.49 High May 31
- RES 3: 116.20 High Jun 1
- RES 2: 115.55 High Jun 6 and key near-term resistance
- RES 1: 114.86 High Jun 9
- PRICE: 113.04 @ Close Jun 10
- SUP 1: 112.57 3.00 proj of the May 19 - 24 - 26 price swing
- SUP 2: 112.10 3.236 proj of the May 19 - 24 - 26 price swing
- SUP 3: 112.00 Round number support
- SUP 4: 111.81 3.382 proj of the May 19 - 24 - 26 price swing
Gilt futures traded lower again Friday. The move down last week confirmed a resumption of the downtrend and an extension of the latest bear leg that began May 19. This also maintains a bearish price sequence of lower lows and lower highs. Price has cleared 115.00 and the focus is on 112.57 next, a Fibonacci projection. Initial firm resistance is seen at 115.55, high Jun 6. Short-term gains would be considered corrective.
