(Z3) Outlook Remains Bearish

• 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: 112.89/113.84 20-day EMA / High Sep 14 and key resistance
• PRICE: 111.33 @ Close Sep 22
• SUP 1: 111.21 Low Sep 22
• SUP 2: 110.77 3.00 proj of the Aug 24 - 28 - 31 price swing
• SUP 3: 110.00 Round number support
• SUP 4: 109.18 4.00 proj of the Aug 24 - 28 - 31 price swing

The Sep 15 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 110.77, a Fibonacci projection. Key short-term resistance has been defined at 113.84, the Sep 14 high. A break would highlight a possible base.