RENEWABLES: UK Morning Wind Forecast

• RES 4: 92.31 High Nov 12
• RES 3: 92.00 Round number resistance         
• RES 2: 91.78/93 High Dec 17 / High Nov 27
• RES 1: 91.18 High Dec 23      
• PRICE: 91.02 @ Close Dec 23
• SUP 1: 90.50 Low Dec 16       
• SUP 2: 90.28 Low Nov 21  
• SUP 3: 90.00 Round number support    
• SUP 4: 89.86 Low Nov 19 and the bear trigger     

Recent price action in Gilt futures highlights 90.50, the Dec 16 low, and 91.93, the Nov 27 high, as two important short-term directional triggers. A clear breach of support at 90.50 would signal scope for a deeper retracement towards 89.86, the Nov 19 low and a bear trigger. For bulls, a stronger resumption of gains and a breach of 91.93, would instead signal scope for a climb towards resistance at 92.55, the Nov 11 high.

• RES 4: 7021.79 0.618 proj Nov 21 - Dec 11 - 18 price swing   
• RES 3: 7014.00 High Oct 30 and the bull trigger
• RES 2: 6988.00 High Dec 11
• RES 1: 6963.75 High Dec 24    
• PRICE: 6954.75 @ 07:11 GMT Dec 24
• SUP 1: 6882.91/6840.86 20- and 50-day EMA values
• SUP 2: 6737.71 61.8% retracement of the Nov 21 - Dec 11 rally 
• SUP 3: 6678.58 76.4% retracement of the Nov 21 - Dec 11 rally
• SUP 4: 6583.00 Low Nov 21  

The recent pullback in S&P E-Minis appears to have been a correction. A key short-term support has been defined at 6771.50, the Dec 18 low. A break of this level would signal scope for a deeper retracement of the recent bull phase between Nov 21 - Dec 11. This would open 6737.71, a Fibonacci retracement. For bulls a continuation higher would open key resistance at 7014.00, the Oct 30 high.

• US Cash Treasuries are trading mixed with Eurex closed for the session.
• The Belly underperforms somewhat and the curves are a touch flatter to unchanged going into the early European session.
• The 4.20% Yield level in the 10yr provided the support in Tnotes (TYH6) Yesterday, printed a 4.2001% high.
• For now the 10yr Yield has drifted back to 4.15% (4.1550% is the low).
• Although not a Technical level, the resistance in TYH6 falls down to 112.15+, this is where the contract was trading at before that surprising high print in the US GDP.
• Focus Today will be on the US IJC but this Data shouldn't really move the needle.
• SUPPLY: US sells $44bn of 5yr notes.