CAPITAL GOODS: ABB (ABBNVX A2/A/NR): Spin Off

• RES 4: 94.00 Round number resistance    
• RES 3: 93.79 High Mar 4 and a bull trigger         
• RES 2: 93.06 Low Mar 4 and a gap high on the daily chart  
• RES 1: 92.37/63 High Mar 17 / 7 and a key resistance                      
• PRICE: 92.28 @ Close Mar 17
• SUP 1: 91.07/90.71 Low Mar 13 / 6                                     
• SUP 2: 90.49 1.618 proj of the Feb 6 - 20 - Mar 4 price swing  
• SUP 3: 90.19 1.764 proj of the Feb 6 - 20 - Mar 4 price swing   
• SUP 4: 89.71 2.000 proj of the Feb 6 - 20 - Mar 4 price swing 

The short-term trend outlook in Gilt futures remains bearish and gains are - for now - considered corrective. A resumption of the downtrend would pave the way for a test of 90.71, the Mar 6 low and a bear trigger. Clearance of this level would confirm a resumption of the downtrend and open 90.49, a Fibonacci projection. Initial firm resistance is 92.63, Mar 7 high. A move above this level would instead strengthen a bullish theme.

Finland, Germany, Spain, France and Ireland are all still due to hold auctions this week, whilst Slovakia already issued. We look for estimated gross issuance for the week of E27.2bln, vs E32.2bln last week.

For the full document including more details on issuance this week and next week click here.

• Today, Finland will hold a conventional auction to a sell combined E1.0-1.5bln of the 3.00% Sep-34 RFGB (ISIN: FI4000571104) and the 2.75% Apr-38 RFGB (ISIN: FI4000546528).
• Tomorrow, Germany will hold a 30-year Bund auction to sell E1.0bln of the 0% Aug-50 Bund (ISIN: DE0001102481) alongside E1.5bln of the 1.80% Aug-53 Bund (ISIN: DE0001102614).

• RES 4: 154.80 High Dec 12 ‘24 and a key resistance     
• RES 3: 152.70 50.0% retracement of the Jan 10 - Mar 11 bear leg  
• RES 2: 151.30/36 High Mar 3 / 50-day EMA  
• RES 1: 150.18 High Mar 5  
• PRICE: 149.87 @ 06:47 GMT Mar 18 
• SUP 1: 147.45/146.54 Low Mar 14 / 11 and the bear trigger   
• SUP 2: 145.40 2.0% 10-dma envelope
• SUP 3: 145.00 Round number support 
• SUP 4: 144.13 76.4% retracement of the 16 ‘24 - Jan 10 bull leg 

USDJPY is trading higher this week, extending the correction that started Mar 11. The 20-day EMA has been breached and this signals potential for a climb towards resistance at the 50-day EMA, at 151.36. Note that the Mar 3 high is at 151.30. Clearance of both levels is required to highlight a stronger reversal. Moving average studies remain in a bear-mode set-up, highlighting a dominant downtrend. The bear trigger is at 146.54, the Mar 11 low.