As we wrote in the previous issue there were several signs for the market looking for a bottom in the first week of January. Hesitation characterized last Monday’s trading as well. The price fell to 6.67 euro, a level not seen mid-December.
The ITRE rapporteur’s new proposal on Tuesday of an MSR start in 2019 however gave wings to the price that broke the 7 euro level, the 20 and 30DMAs and several Fibonacci retracement levels. On the last three days of the week the price moved in a range between the 20DMA and 7.48 euro.
The MACD is above the zero line again and crossed the signal curve, which can be considered as a bullish sign. Until the ITRE vote however we expect the price to move sideways between 7.00 and 7.50 euro.
Source: Bloomberg Finance L.P.