HEALTHCARE: Astra Zeneca (AZN: A2 pos/A+/Au): Q424

• There's very little change for Bund, a lighter and tighter overnight session, following a busier start Yesterday.
• The contract closed its opening gap up to 132.50 Yesterday, but failed to see further upside traction.
  Resistance moves up to 132.71, followed by 133.10 initially.
• Main immediate support is unchanged at 132.00.
• On the Data front, it is picking up today and it includes, France, Italy, EU prelim CPIs, and out of the US, JOLTS and ISM Services.
• The ECB will also release 1yr and 3yr CPI expectations.
• SUPPLY: UK £2.25bn 30yr (equates to 31k Gilt) should weigh, Austria 2029, 2071, Germany €4.5bn Schatz (equates to 42k Schatz) should weigh, US sells $39bn of 10yr Reopening.
• SYNDICATION; Belgium 10yr, Slovenia 30yr Benchmarks.
• SPEAKERS: Fed Barkin.

• RES 4: 123.34 High Dec 11 and key resistance     
• RES 3: 122.85 High Dec 12  
• RES 2: 121.94 High Dec 13  
• RES 1: 120.45/120.66 High Jan 2 / 20-day EMA   
• PRICE: 119.49 @ Close Jan 6 
• SUP 1: 119.11 Low Nov 18        
• SUP 2: 118.80 76.4% retracement of the Nov 7 - Dec 11 bull cycle  
• SUP 3: 118.51 Low Nov 8
• SUP 4: 117.40 Low Nov 7 and a key support      

The current bear cycle in BTP futures remains in play and the latest fresh cycle low reinforces current conditions. The contract has recently breached the 20-day EMA and sights are on 118.80, a Fibonacci retracement point. Clearance of this level would strengthen the bearish theme. Key resistance and the bull trigger has been defined at 123.34, the Dec 11 high. Initial firm resistance is seen at 120.66, the 20-day EMA.

• RES 4: 93.87 Low Dec 16  
• RES 3: 93.64 High Dec 17  
• RES 2: 93.04 20-day EMA 
• RES 1: 92.88 High Jan 2              
• PRICE: 91.95 @ Close Jan 6 
• SUP 1: 91.64 Low Dec 19 and the bear trigger                         
• SUP 2: 91.58 4.382 proj of the Dec 3 - 4 - 5 minor price swing
• SUP 3: 91.45 4.500 proj of the Dec 3 - 4 - 5 minor price swing
• SUP 4: 91.33 4.618 proj of the Dec 3 - 4 - 5 minor price swing

The trend condition in Gilt futures is unchanged, it remains bearish and recent short-term gains appear to have been corrective. The recent breach of 91.87, the Dec 19 low, confirmed a resumption of the downtrend. Sights are on 91.58 next, a 4.382 projection of the Dec 3 - 4 - 5 minor price swing. Initial resistance is at 92.08, the Jan 2 high. Resistance at the 20-day EMA, is at 93.16, and the average is seen as an important hurdle for bulls.