European openings on the upside with operator sentiment remaining optimistic. The market seems to have shrugged off the concerns of the previous sessions, also thanks to the supportive attitude of the central banks. However, the still low level of the American decade indicates that operators believe that growth may not be exciting, indeed slowing. And so yields fall and growth stocks rise which, being the largest capitalization ones, also drag the main market. The report on the American labor market released this afternoon is very important to measure the strength of the recovery. Expectations are for an increase in payrolls to 870,000 units from 850,000 in June; an unemployment rate of 5.7%, down from the previous 5.9%.
STM returns to the highs of February
Very technical graphic for STM. Each movement, after a retracement / retest of important levels, triggered a bullish leg. In fact, the action having broken the bearish trendline to the upside, has retraced to rest on the 200-period moving average from which a strong rise subsequently started with the target the highs of February now reached and subsequently very ambitious objectives. For leveraged operations with open end turbos, the downward levels at 34.96 and subsequently 33.7 are excellent supports from which to evaluate long entries. On the upside, once the February highs are broken there is plenty of room to rise.
For those who want operate Long with leverage, could consider the Turbo Open End Long UniCredit ISIN DE000HV8CWP6 with 8.7 times leverage and strike at 32 Euro, or ISIN DE000HV8BT38 with 4.8 times leverage and strike € 28.61.
For those who want operate Short leveraged, might consider the Turbo Open End Short UniCredit ISIN DE000HV8CSP4 with 7.05 times leverage and strike at 40.5 Euro.
Understanding shows strength on key levels
In agreement with the entire banking sector, it was penalized by the drop in yields. However, after approaching the 200-day moving average, it made progress along with its industry. After having broken and retested the bearish trendline that started from the highs of February, it now seems ready for new important rises with targets for the pre Covid highs of 2.62 Euro. Obviously further increases will depend on the macroeconomic environment and on yields. For these reasons, to enter long we recommend waiting for a test of the support at 2.23 Euro or the breaking of the resistance at 2.42 Euro. On the downside, the level of 2.18 euros continues to be of considerable importance, below we point out the 200-day moving average which passes for 2.12 euros.
For those who want operate Long with leverage, could consider the Turbo Open End Long UniCredit ISIN DE000HV4KXW2 with 6.8 times leverage and strike at 2.03 Euro, or ISIN DE000HV8CSG3 with 8.6 times leverage and 2.1 Euro strike.
For those who want operate Short leveraged, might consider the Turbo Open End Short UniCredit ISIN DE000HV478E7 with 8.2 times leverage and strike at 2.6 Euro.
Below are the trading floor analyzes
https://www.youtube.com/embed/lqoKkPR0pvg” title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture” allowfullscreen>