On yet another day where I am flailing to see much of note, I revert back to Europe and a follow on from my note of yesterday - The Fickle Finger Of Fate and the ECB
As noted in that piece I think that there could be a big danger of some "flip-flopping" from the ECB and that energy prices (European Natural gas in particular) could drive that.
In that respect the chart below of ERZ5 looks interesting.
Yesterday's high at 98.175 fell just short of the 76.4% pullback level at 98.18 and we have since fallen away. This sets us up for a possible double top with a neckline at 98.02
A break below there would target at least back to the recent low at 97.87 and a break below there, if seen, a further downside acceleration.
This as European Natural Gas (TZT1) is testing good resistance at EUR 42,90 to EUR43.19. A break above here would target at least EUR 47.10-Eur 48.12 and above there possibly the pivotal EUR 56.10 (Possible major double bottom neckline)
Looking at all this a short ERZ5 trade with a stop loss at 98.20 and a minimum target of 97.87 looks like a good risk reward trade
