BTP TECHS: (Z5) Bullish Trend Condition
- RES 4: 121.00 Round number resistance
- RES 3: 120.74 High Aug 5 and the bull trigger
- RES 2: 120.61 High Aug 14
- RES 1: 120.42 High Sep 5
- PRICE: 120.21 @ Close Sep 9
- SUP 1: 119.06/118.36 Low Sep 4 / 3
- SUP 2: 118.00 Round number support
- SUP 3: 117.70 2.236 proj of the Aug 5 - 12 - 14 price swing
- SUP 4: 117.36 2.500 proj of the Aug 5 - 12 - 14 price swing
The primary trend condition in BTP futures is unchanged, it remains bullish. The strong rally from last week’s low highlights a bullish development and signals the end of the recent corrective pullback between Aug 5 - Sep 3. Key resistance and the bull trigger is 120.74, the Aug 5 high. A break of this hurdle would confirm a resumption of the uptrend. Key support has been defined at 118.36, the Sep 3 low.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI: NORWAY JUL UNDERLYING CPI +0.8% M/M, +3.1% Y/Y
- MNI: NORWAY JUL UNDERLYING CPI +0.8% M/M, +3.1% Y/Y
- MNI: NORWAY JUL CPI +0.8% M/M, +3.3% Y/Y
EUROZONE ISSUANCE: EGB Supply
Finland and Germany are due to hold auctions this week. We pencil in issuance of just E6.5bln in the week, down from E24.5bln last week.
- Finland will kick off issuance for the week tomorrow with a conventional auction. On offer will be up to a combined E1.5bln of the 3.00% Sep-35 RFGB (ISIN: FI4000587415) and the 0.25% Sep-40 RFGB (ISIN: FI4000440557).
- Germany will come to the market on Wednesday with E5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056).
- Cancelled auction: The MEF has announced that it will not hold the 3/7/15+ year BTP auction that had been scheduled for 13 August. This is in line with recent convention and is not unexpected. The MEF noted that this decision was taken “considering the cash management activity”.
NOMINAL FLOWS: This week sees E43.9bln of redemptions, of which E30.5bln is from a formerly 10-year Bund and E13.4bln from a formerly 3-year BTP. Coupon payments for the week total E6.3bln of which E5.5bln are German and E0.8bln are Italian. This leaves estimated net flows for the week strongly negative at negative E43.8bln, versus positive E23.5bln last week.
MNI EXCLUSIVE: Chinese Policy Advisor Looks At Deflation Issues
A prominent economist and advisor discusses China's deflation challenges -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.
