Interfax reports that yesterday Russia’s central bank came to an agreement with owners and shareholders of Otkritie Bank which had suffered a run on its deposits. Russia’s largest private lender and the seventh largest by assets, the bank has links to major state enterprises. They have not put a figure on the bail-out but they will take a 75 per cent stake after assessing its current financial position; it will possibly be the biggest ever Russian rescue.
Speaking in Paris yesterday Angela Merkel joined forces with French President Emmanuel Macron’s initiative of creating a new role of Eurozone finance minister. The single currency block would have its own budget and its aim was deeper integration and introducing measures to help the area weather future crises.
DAX 30
Dipping briefly to its lowest level since late March dragging the 50-day moving average down ever closer to the 200-day one.
SHORT TERM TRADER: Small short at 12225; stop above 12300. Target 11550.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Terrified of its own shadow as we test horizontal support, creating a massive dragonfly doji. This hints that we might just bide our time this holiday-shortened week.
SHORT TERM TRADER: Square but will sell on a daily close below 7300.
POSITION TAKER: Short at 7300; stop above 7460. Target roughly 7000.
S&P 500
Popping up above our newly drawn tend line resistance as we continue to move sideways between 2420 and 2460. Perhaps this will remain the case until US employment data is published on Friday.
SHORT TERM TRADER: Short at 2468; stop above 2475. Next target is pivotal support at 2400.
POSITION TAKER: Will sell on a weekly close below 2400.
BRITISH POUND/US DOLLAR
Sterling weakness, trading briefly above £0.9300 (€1.0750) to the euro and cable struggling with the 50 per cent retracement level.
SHORT TERM TRADER: Small long at 1.2950; stop below 1.2770. Target 1.3100.
POSITION TAKER: Square.
EURO/US DOLLAR
Lots of noise as the euro rallies to its strongest against the US dollar since late December 2014, briefly breaking above the psychological 1.2000. Note that this is a function of generalised US dollar weakness where yet again the New Zealand central bank came out this morning trying to put a lid on its appreciating currency because it is damaging export prospects.
SHORT TERM TRADER: Small long at 1.1745; stop below 1.1900. Next target 1.2200.
POSITION TAKER: Square.
GOLD
Struggling a little at this year’s highest levels.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
Nicole Elliott is a long standing Member of the Society of Technical Analysts and has taken over the IC’s trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.
