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(M4) Corrective Cycle Remains In Play

BOBL TECHS
  • RES 4: 118.100/118.310 High Apr 12 / High Mar 27
  • RES 2: 117.620 High Apr 19
  • RES 3: 117.569 50-day EMA
  • RES 1: 117.290 High May 3
  • PRICE: 117.180 @ 05:41 BST May 7
  • SUP 1: 116.230 Low May 1
  • SUP 2: 116.135 1.50 proj of the Mar 8 - 18 - 27 price swing
  • SUP 3: 115.964 1.618 proj of the Mar 8 - 18 - 27 price swing
  • SUP 4: 115.752 1.764 proj of the Mar 8 - 18 - 27 price swing

The downtrend in Bobl futures remains intact and the latest bounce appears to be a correction. The contract traded to a fresh cycle low of 116.230 on Apr 30. Key support at 117.200, the Feb 29 low, has recently been cleared, confirming a resumption of the primary downtrend. A resumption of the trend would open 116.135, a Fibonacci projection. Resistance to watch is 117.569, the 50-day EMA. A clear break of it would be viewed as a bullish signal.

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