BTP TECHS: (Z5) Trend Needle Points North

• RES 4: 123.14 1.764 proj of the Sep 3 - 11 - 25 price swing
• RES 3: 122.81 1.618 proj of the Sep 3 - 11 - 25 price swing
• RES 2: 122.53 1.500 proj of the Sep 3 - 11 - 25 price swing
• RES 1: 121.94 High Oct 17 / 24 and the bull trigger  
• PRICE: 121.35 @ Close Oct 28
• SUP 1: 120.74 High Aug 5 and a recent breakout level          
• SUP 2: 120.43 50-day EMA 
• SUP 3: 119.48 Low Oct 7 
• SUP 4: 119.07 Low Sep 25t

Bullish trend conditions in BTP futures remain intact short-term weakness is - for now - considered corrective. Recent gains resulted in a break of key resistance at 120.74, the Aug 5 high and a bull trigger. The breach also highlights a range breakout. The bull trigger is 121.94, the Oct 17 / 24 high.  Initial firm support to watch is 120.74, the Aug 5 high. Note that the contract is overbought, a deeper pullback would allow this condition to unwind.

• RES 4: 94.24 1.618 proj of the Sep 3 - 11 - 26 price swing  
• RES 3: 94.00 Round number resistance        
• RES 2: 93.95 1.500 proj of the Sep 3 - 11 - 26 price swing
• RES 1: 93.96 High Oct 28   
• PRICE: 93.74 @ Close Oct 29
• SUP 1: 93.15 Low Oct 27       
• SUP 2: 92.41 20-day EMA 
• SUP 3: 91.80 50-day EMA
• SUP 4: 91.60 Low Oct 14    

A bull cycle in Gilt futures remains intact and yesterday’s fresh cycle high reinforces current conditions. Note too that MA studies are in a bull-mode position, highlighting a dominant uptrend. Sights are the 94.00 handle next. A break of this level would pave the way for an extension towards 94.24, a Fibonacci projection The contract is overbought, a pullback would allow this condition to unwind. Firm support to watch 92.41, the 20-day EMA.

• RES 4: 5800.00 Round number resistance 
• RES 3: 5777.41 1.382 proj of the Aug 1 - 22 - Sep 2 price swing 
• RES 2: 5727.18 1.236 proj of the Aug 1 - 22 - Sep 2 price swing
• RES 1: 5721.00 High Oct 27       
• PRICE: 5705.00 @ 06:47 GMT Oct 29
• SUP 1: 5633.28 20-day EMA  
• SUP 2: 5545.76 50-day EMA  
• SUP 3: 5423.00 Low Sep 25  
• SUP 4: 5366.00 Low Sep 17     

The trend structure in Eurostoxx 50 futures is unchanged and remains bullish. Monday’s fresh cycle high reinforces a bull theme and maintains the rising price sequence of higher highs and higher lows. Note too that moving average studies are in a bull-mode position, highlighting a dominant medium-term uptrend. Sights are on 5727.18, a Fibonacci projection. First support lies at 5633.28, the 20-day EMA.