Technical Weekly 19042007

Equities
The DJ Euro Stoxx 50 validates a bearish rising wedge pattern, which means that a pull-back to support zone around 4270-4260 on the DJ EURO STOXX 50 seems likely in the coming days/weeks.

The overall trend remains positive (most trading indicators on buy -table1) but after a strong acceleration during the last four weeks, the index needs a rest.
The first support zone on the hourly chart is 4300.

The danger for the equity markets may be coming from the Chinese market as the trend for the CSI 300 index is now turning parabolic and as the daily TD combo and TD sequential indicators are just recently flashing sell signals (this was also the case in mid February).

Bonds
The German 10 Year yield recently broke through the 4.1% resistance zone but started a pull-back towards this zone. (short term sell signal –arrow on chart).
Nevertheless I keep my target of 4.5% for the coming weeks.

Brent
Last week I said that the Brent must first correct his overbought status before another up-leg can begin.
A rebound on the lower trend-line channel (in green on the chart) could be the trigger for a rise towards the upper trend-line channel.

Euro
My first target of 1.36 is already reached and the Euro dollar remains in a very strong bullish trend.
However, we do not believe that the next target will be reached immediately because technical indicators are now very overbought. (red arrow on the chart).
A consolidation is more likely in the coming days.