BTP TECHS: (Z5) Support Remains Intact For Now

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance 
• RES 2: 121.73 High Jun 13 and the bull trigger 
• RES 1: 121.13 High Aug 15
• PRICE: 120.36 @ Close Aug 26
• SUP 1: 119.59 Low Jul 25 and key short-term support         
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The primary trend condition in BTP futures is unchanged, the direction remains up. However, for now, the contract continues to trade inside a range and the Aug 15 sell-off signals scope for a move towards the lower end of the range. Key support to watch lies at 119.59, the Jul 25 low. A clear break of this level would highlight a range breakout and a bearish threat. Key resistance is unchanged at 121.73, the Jun 13 high.

• RES 4: 92.15 High Aug 11  
• RES 3: 92.06 High Aug 14       
• RES 2: 91.45 High Aug 15
• RES 1: 91.24 High Aug 18 and a key near-term resistance 
• PRICE: 90.41 @ Close Aug 25
• SUP 1: 90.25 Low Aug 22
• SUP 2: 90.11 Low May 22 and a key support
• SUP 3: 90.0089.99/ Psychological round number / Low Apr 9 (cont)
• SUP 4: 89.68 Low Jan 15 (cont)       

A bear cycle in Gilt futures remains in play and yesterday’s fresh cycle low reinforces current conditions. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a clear downtrend - for now. First support to watch is 90.25, the Aug 26 low. A break would resume the bear leg and open the 90.00 handle. Initial resistance is at 91.24, the Aug 18 high.

• MNI CHINA MONEY MKT INDEX AUG LQDTY OUTLOOK 48.9 VS JULY 46.8
• MNI CHINA MMI CURRENT LQDTY CONDITIONS AUG 37.2 VS JULY 25.3
• MNI CHINA MMI ECONOMIC CONDITIONS AUG 56.4 VS JULY54.3