BRENT TECHS: (X5) Still Looking For Weakness
- RES 4: $79.16 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
- RES 3: $77.28 - 2.382 proj of the Apr 9 - 23 - May 5 price swing
- RES 2: $76.39 - High Jun 23 and a bull trigger
- RES 1: $69.53/71.93 - High Sep 2 / High Jul 30 and a key resistance
- PRICE: $66.83 @ 07:08 BST Sep 5
- SUP 1: $64.50 - Low Jun 30 and a key short-term support
- SUP 2: $60.82 - Low May 30
- SUP 3: $58.37 - Low May 5
- SUP 4: $57.81 - Low Apr 9 and a key support
Brent futures have pulled back from Tuesday’s high. Recent short-term gains are for now, considered corrective and a bear cycle remains intact. A stronger resumption of weakness would refocus attention on $64.50, the Jun 30 low, where a clear break would confirm a continuation of the bear leg. This would open $60.82, the May 30 low. Key short-term resistance has been defined at $71.93, the Jul 30 high. Clearance of this level would cancel a bear theme.
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BRENT TECHS: (V5) Testing 50-day EMA
- RES 4: $83.02 - 3.000 proj of the Apr 9 - 23 - May 5 price swing
- RES 3: $81.07 - 2.764 proj of the Apr 9 - 23 - May 5 price swing
- RES 2: $79.86 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
- RES 1: $72.89/77.73 - 61.8% of the Jun 23-30 downleg / High Jun 23
- PRICE: $68.08 @ 07:05 BST Aug 6
- SUP 1: $67.52/65.06 - Low Aug 5 / Jun 30
- SUP 2: $60.96 - Low May 30
- SUP 3: $58.18 - Low May 5
- SUP 4: $57.74 - Low Apr 9 and a key support
Brent futures slipped sharply Friday on the back of the soft NFP print and extended losses into the Monday close. This extends the spell of weakness posted off the break of $71.40, the 50.0% retracement of the Jun 23 - 50 downleg. A further reversal would refocus attention on key support and the bear trigger at $65.06, the Jun 30 low. A break of this level would resume the recent bearish theme. The next resistance to watch remains $72.89, the 61.8% retracement point.
GERMANY: Setting Up E100bln Fund For Strategic Assets - Bloomberg
"*GERMANY READIES €100 BILLION FUND TO INVEST IN STRATEGIC ASSETS" Bloomberg
From Bloomberg's story:
- "Germany is preparing to launch a €100 billion ($116 billion) investment fund to help secure strategic sectors such as defense, energy and critical raw materials. "
- "Dubbed Deutschlandfonds — or Germany Fund — the investment vehicle will be designed to attract international investors including venture capital and family offices to multiply government resources. "
- "The fund will initially be backed by at least €10 billion in public money, with the aim of mobilizing up to ten times as much private capital, according to a statement to Bloomberg from the economy ministry. "
EQUITY TECHS: E-MINI S&P: (U5) Corrective Pullback Extends
- RES 4: 6523.63 1.764 proj of the May 23 - Jun 11 - 23 price swing
- RES 3: 6500.00 Round number resistance
- RES 2: 6477.31 1.618 proj of the May 23 - Jun 11 - 23 price swing
- RES 1: 6468.50 High Jul 31 and the bull trigger
- PRICE: 6347.50 @ 07:11 BST Aug 6
- SUP 1: 6244.36 2.0% 10-dma Envelope
- SUP 2: 6239.50 Low Aug 1
- SUP 3: 6213.75 50% retracement of Jun - Aug Upleg
- SUP 4: 6203.65 50-day EMA
Equities sold off sharply Friday on the back of the soft NFP print - pushing prices through mid-July lows in the process. This puts price well clear of support at the 20-day EMA, at 6325.25, signalling scope for a deeper retracement toward the 50-day EMA at 6203.65. Clearance of this average is required to signal a stronger reversal. The primary trend remains up, leaving key short-term resistance and the bull trigger at 6468.50, the Jul 31 high.
