(Z3) Heading South

• RES 4: 117.48/60 High Jul 19 / Jun 26 and key resistance (cont)
• RES 3: 116.86 High Jul 24 (cont)
• RES 2: 115.56 High Aug 24 and a bull trigger
• RES 1: 113.27/113.84 20-day EMA / High Sep 14 and key resistance
• PRICE: 111.89 @ Close Sep 19
• SUP 1: 111.67 Low Sep 19
• SUP 2: 111.38 2.618 proj of the Aug 24 - 28 - 31 price swing
• SUP 3: 110.77 3.00 proj of the Aug 24 - 28 - 31 price swing
• SUP 4: 110.00 Round number support

Friday’s sharp sell-off in BTP futures cancelled a recent bullish threat and this week’s move lower confirms a resumption of the downtrend. The contract has breached key support at 111.97, the Sep 13 low and this maintains the bearish price sequence of lower lows and lower highs. The focus is on 111.38, a Fibonacci projection. Key short-term resistance has been defined at 113.84, the Sep 14 high. A break would highlight a possible base.