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BUND TECHS: (U4) Strong Tuesday Close, Exposes Resistance

BUND TECHS
  • RES 4: 133.42 1.764 projection of the May 31 - Jun 5 - 1 price swing            
  • RES 3: 133.21 High Jun 14 and the bull trigger 
  • RES 2: 132.80 High Jun 25
  • RES 1: 132.66 High Jul 17                     
  • PRICE: 132.18 @ 07:26 BST Jul 25
  • SUP 1: 131.76 50-day EMA           
  • SUP 2: 130.95/23 Low Jul 10 / 3 and key short-term support
  • SUP 3: 129.52 Low Jun 10
  • SUP 4: 129.37 Low May 31 and the bear trigger 

Bund futures saw support across Tuesday trade, rallying well off the 50-day EMA to secure a strong close. That filtered through to Wednesday morning, and similarly on Thursday morning. Resistance at 132.66 - the Jul 17 high - is in focus. Last week, the 76.4% retracement of the Jun 14 - Jul 3 bear leg, was pierced, opening 133.21, the Jun 14 high. For bears, a resumption of weakness would refocus attention on key support at 130.23, the Jul 3 low. First support is 131.76, the 50-day EMA.   

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