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(H4) Overbought Condition Alleviates, Aiding Recovery

BUND TECHS
  • RES 4: 140.30 High Mar 20 (cont)
  • RES 3: 140.00 Psychological round number
  • RES 2: 139.39 3.764 proj of the Nov of the 13 - 17 - 24 price swing
  • RES 1: 138.84 High Dec 27
  • PRICE: 137.64 @ 07:33 GMT Jan 04
  • SUP 1: 136.41 20-day EMA
  • SUP 2: 136.25 Low Jan 03
  • SUP 3: 134.37 Low Dec 8 and a key support
  • SUP 4: 133.42 Low Dec 4

Prices recovered into the Wednesday close and have improved further early Thursday as regional German CPIs fared softer-than-expected. The mid-week pull lower has alleviated the overbought trend condition, further aiding a recovery - although last week’s highs remain out of reach for now. The low of 136.25 this week is deemed corrective in nature, with prices still yet to test the 20-day EMA of 135.99. This keeps the broader uptrend intact, extending the recent break of resistance at 135.81, the Dec 7 high. A resumption of gains would open 139.39, a Fibonacci projection. Firm short-term support is seen at 136.41, the 20-day EMA.

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