Morning Trading Comments

Transcription

1 Wednesday, August 29, Morning Trading Comments SUMMARY OF TRADING VIEWS Bulls started to book profits on stockmarkets after last week s rally but most indices are still strong and should continue to take a breather near yesterday s highs. Keep an eye on the Nikkei 225 index which is back just below a key chartist resistance at 23,000 with a potential upside breakout looming. CROSS ASSET EVENTS US 10-year bond yields bouncing off an important support line US 10-year bond yields seem to be at a critical after a significant decline in August. They hit an important support line around 2.80% at the end of last week and bounced off this support zone over the last two days. This technical reaction suggests that US bond yields may be starting a technical bounce at least back to 3%. Also keep an eye on German 10-year bond yields which also bounced off an important support level at 0.30% last week whilst key resistance to monitor is at 0.50%. Technical Analysis Cyril BAUDRILLART, CFTe cyril.baudrillart@tradition.com

2 Wednesday, August 29, DETAILED TRADING OUTLOOK ON MAIN INDICES S&P 500 E-MINI FUTURE (ESU8) RESISTANCES / SUPPORTS 2894 / 2887 / 2870 Comments Holding near record highs. PREFERRED CASE for next days The index was quiet yesterday with some profit taking registered after 2 strong sessions but no meaningful trend reversal at this stage. Watch the as next trading target zone whilst 2894 is critical support level for the day. EURO STOXX 50 FUTURE (VGU8) RESISTANCES 3458 / 3487 / 3530 SUPPORTS 3430 / 3415 / 3400 Comments Watch Fibonacci resistance at PREFERRED CASE for next days Profit taking seen yesterday around Fibonacci resistance at 2458 after last week s strong revival. ST trend still bullish above The index should stay above this level today.

3 Wednesday, August 29, DAX 30 FUTURE (GXU8) RESISTANCES / / SUPPORTS / / Comments Watch Fibonacci resistance at PREFERRED CASE for next days The index should stay near its Fibonacci resistance at where we saw profit taking yesterday. The area is critical support with an intermediate level at DAILY SCREENING OF EUROPEAN EQUITIES (STOXX 600) Upside breakouts Yara International Downside breakouts Sydbank TREND FOLLOWING IDEAS TRADING BUY Near 200-day MAs Cellnex Telecom Perfected TD setup 9 Buy - Oversold - CONTRARIAN TRADING IDEAS TRADING SELL Perfected TD setup 9 Sell Atos, JCDecaux, Fortum, Deutsche Lufthansa Overbought - See all charts in next pages

4 Wednesday, August 29, TREND FOLLOWING IDEAS WITHIN STOXX 600 INDEX Upside breakouts YAR NO Equity : Yara International ASA Downside breakouts SYDB DC Equity : Sydbank A/S

5 Wednesday, August 29, CONTRARIAN TRADING BUY IDEAS WITHIN STOXX 600 INDEX Stocks back on 200-day MA CLNX SQ Equity : Cellnex Telecom SA

6 Wednesday, August 29, CONTRARIAN TRADING SELL IDEAS WITHIN STOXX 600 INDEX Daily Perfected Setup 9 Sell ATO FP Equity : Atos SE DEC FP Equity : JCDecaux SA FORTUM FH Equity : Fortum OYJ LHA GY Equity : Deutsche Lufthansa AG

7 Wednesday, August 29, Technical Analysis Equity Sales Cyril BAUDRILLART Cyril.baudrillart@tradition.com Methodology All technical indicators used in this publication are based on historical prices broadcasted by Bloomberg. Several types of indicators are used in this report such as Bollinger Bands, Oscillators (RSI, MACD), Point & Figure charts, Ichimoku, Keltner Bands and other technical analysis tools. More details on how to interpret and use these tools are available upon request. Market timing indicators developed by Tom DeMark are also used in this report. The DeMark Indicators are a registered trademark of DeMark Analytics, LLC. Please note that all the content shown are my personal views and based on my own interpretation of the DeMark Indicators using the DeMark Service for Bloomberg. Please visit for more information. Disclaimer Any investments or securities referred to in communications between us ( Investments ) may involve significant risks and not necessarily be suitable for all investors. Such risk may involve, without limitation, market risk, high volatility, credit and default risk, illiquidity, currency risk and interest rate risk. There can be no assurance that the Investments will achieve their investment objective and as a consequence an investor may in certain circumstances lose their entire investment. Any potential investor should ensure they understand all of the risks associated with these Investments, including any legal, tax, accounting and other business considerations. Investors are deemed to have sufficient knowledge, experience and access to appropriate professional advice to assess the suitability and risks of an investment in these Investments. TFD will not be liable whatsoever for any direct, indirect or consequential loss arising from any use of the information relating to the Investments ( Information ) or any omission by TFD in respect of such Investments. While every effort has been made to verify the accuracy of Information, including any valuations, opinions or estimates, no representation or warranty is made as to its validity, timeliness, completeness, accuracy or reliability and it should not be relied upon as such. All Information is subject to change without notice. In producing all Information, TFD is not acting in any capacity whatsoever as a financial adviser or fiduciary to potential investors. Potential investors must consult with their own legal, regulatory, tax, business, investment, financial and accounting advisors as deemed necessary. No provision of information regarding Investments shall constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in any particular trading strategy. This document is directed at Eligible Counterparties and Professional Clients as defined by the FCA. This document is not for distribution to nor should it be relied upon by Retail Clients as defined by the FCA. This document is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to any applicable law or regulation. The investments referred to in this document are not at any time to be offered, sold, resold or delivered, directly or indirectly, in the United States or to US persons. This document may not be distributed in the United States. Please note that, for business or compliance reasons, we may monitor and read s sent or received using our servers or equipment. TFD hereby reserves all rights in the Information and you may not disseminate the Information without prior approval.