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(M1) Bearish Focus

BUND TECHS
  • RES 4: 172.83 Low May 5
  • RES 3: 175.51 High Feb 16
  • RES 2: 172.28 High Feb 18
  • RES 1: 172.09 High Mar 3
  • PRICE: 170.81 @ 04:51 GMT Mar 5
  • SUP 1: 170.67 50.0% retracement of the Feb 25 - Mar 3 rally
  • SUP 2: 169.91 76.4% retracement of the Feb 25 - Mar 3 rally
  • SUP 3: 169.24 Low Feb 25 and the bear trigger
  • SUP 4: 169.00 Round number support

Bund futures reversed direction Wednesday stalling at the area of resistance highlighted by the 20-day EMA. In pattern terms, Wednesday's candle formation is a bearish engulfing reversal. This suggests a resumption of the downtrend and if correct, signals scope for a retest of last week's low of 169.24 on Feb 25. Key short-term resistance has been defined at 172.09, Mar 3 high. A break would instead signal scope for a stronger recovery.

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