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(H4) Unwinding An Overbought Trend Condition

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: 136.52 @ 07:33 GMT Jan 03
  • SUP 1: 136.25 Low Jan 03
  • SUP 2: 136.22 20-day EMA
  • SUP 3: 134.37 Low Dec 8 and a key support
  • SUP 4: 133.42 Low Dec 4

Prices extended the pullback off last week’s highs into the Tuesday close, as markets continue to unwind an overbought trend condition. The low of 136.25 is deemed corrective in nature, with prices still yet to test the 20-day EMA of 135.99. This keeps the broader uptrend intact after the contract traded higher on Wednesday last week, 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 136.22, the 20-day EMA.

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