EQUITIES: Another strong start for the EU Bank Index

Goldman Sachs have recommended ERM5/Z5 flatteners, with an entry at -13.0, targeting a move to -30.0, with a stop set at -5.0.

• They think “the trimmed risk of 50bp cut odds is reasonable given the modest upside surprises to recent inflation data in Europe and expect terminal rate pricing in H225 to lead any further rally from here.”

Notable Large Block on Friday, the session also saw 2x the 20d average volumes in SX5E and SX7E:

• SX5E Feb 4725/4700ps traded in 83.5k.
• SX5E Feb 4900/4875ps traded ~28kx29k.
• SX5E Apr 4175/4125ps traded in 50k.

FTSE rolling puts:

• UKX Feb 6500p into Mar 6700p traded in 17kx15k.
• UKX Mar 7200p into Apr 7400p traded in 6.5kx7k.

• RES 4: $34.903 - High Oct 23 and the bull trigger  
• RES 3: $33.125 - High Nov 1 
• RES 2: $32.338 - High Dec 12 and a key resistance  
• RES 1: $30.974 - HIgh Jan 16                              
• PRICE: $30.402 @ 08:07 GMT Jan 20  
• SUP 1: $29.509/28.748 - Low Jan 13 / Low Dec 19 and bear trigger        
• SUP 2: $28.446 - 76.4% retracement of the Aug 8 - Oct 23 bull cycle 
• SUP 3: $27.686 - Low Sep 6 
• SUP 4: $26.451 - Low Aug 8  

A bear cycle in Silver that started Oct 23 remains in play - for now - and recent gains appear corrective. However, the metal traded higher last week suggesting scope for a continuation near-term. An extension would expose key resistance at $32.338, the Dec 12 high. Clearance of this level would signal a reversal. On the downside, support to watch is $29.509, the Jan 13 low, and $29.748, the Dec 19 low and the bear trigger.