Contracts have been consolidating yday, but this pause is taking the shape of ranges or slightly descending channels. It is therefore not jeopardizing the overall bullish trend, and we maintain our advise to be buyers into weakness.
ESTOXX M4 (ref. 5075): The contract remains within the consolidation channel we highlighted yday. We still expect the 5058 support to cluster the buying pressure and favour to play a push higher with 5090/5100 then 5120 in sight.
Supports: 5058 - 5043 - 5030 - 5003
Resistances: 5090 - 5100 - 5120 - 5150
S&P M4 (ref. 5245.25): The contract struck yday against Friday's high at 5264, then escaped on the downside from its intraday ascending channel to bounce on the 5232.5 support. Following this price action, it is now seesawing within a very short-term range set between 5232.50 & 5264. As the overall trend remains constructive, we favour going long around the lower end of the range to play a re-test of the upper end (5264) and potentially a break higher with 5286 in sight.
Supports: 5232.5 - 5220 - 5200 - 5188
Resistances: 5248 - 5264 - 5286 - 5308
Disclaimers
About the Author: Letheuil Fabien
Author’s Conflict of Interest, if relevant: None
MUFPS Disclaimers:
This communication constitutes an investment recommendation within the meaning of the Market Abuse Regulation EU 596/2014 (MAR). The content has been prepared solely for the purpose of providing information to clients of Marina UFP SAS. This material contains the views, opinions, and trade ideas of author (sender) and should not be construed as investment advice as defined by the Markets in Financial Instruments Directive 2014/65/EU (MiFID II). Investors must make their own determination and investment decisions.
To discharge its obligations under MAR, Mariana UFP SAS has provided relevant disclosures regarding conflicts of interest as well as underlying assumptions, valuations or methodologies used to evaluate financial instruments or issuers or to set price targets, which can be found here https://marianaufp.com/regulatory/
Under MiFID II Delegated Regulation 2017/565 article 36 (2), this document is not Independent Investment Research and therefore: This document has not been developed in accordance with legal requirements designed to promote the independence of investment research and its author(s) is/are not subject to any prohibition on dealing in the relevant financial instrument ahead of the dissemination of the marketing communication.
This document is intended only for the use of the individuals or entities to which it is addressed and may not be altered, reproduced, redistributed, or passed on to any other third party, in whole or in part, without the prior written consent of Mariana UFP SAS. In the event of a written consent any alteration, reproduction, redistribution or passing this document to any other party would have to be performed in accordance with Chapter III of MAR Delegated Regulation 2016/958.
This communication has been prepared by NAME, a member of Mariana UFP SAS (“MUFPs”). MUFP is regulated by the ACPR and the AMF BIC code: 14483