MNI European Morning FI Technical Analysis

8 September 2017

By Kyle Shortland

Please click on this link to access MNI's daily European FI Technical Analysis

Pdf - http://tinyurl.com/nhjogts

BUND TECHS: (Z17) Pressuring Bull Channel Top

*RES 4: 164.26 Daily Bull channel top B

*RES 3: 163.89 Low June 1 now resistance

*RES 2: 163.32 Daily Bull channel top A

*RES 1: 163.24 High Sept 7

*PREVIOUS CLOSE: 163.16

*SUP 1: 162.93 High Aug Sept 5 now support

*SUP 2: 162.47 Hourly resistance Sept 7 now support

*SUP 3: 164.26 Daily Bull channel base B

*SUP 4: 162.22 Low Sept 7

*COMMENTARY: The daily bull channel base off July 28 lows supports with pressure

on the longer term bull channel top off July 7 lows. Layers of support

accumulating sees bears needing a close below 162.93 to gain breathing room and

hint at a correction back to 161.66-162.22 with the 21-DMA at 161.87. While the

bull channel B supports bulls focus on 163.89 with a close above to initially

target 164.26/32. The Bollinger top (163.04) is the key concern for bulls.

BOBL TECHS: (Z17) Bears Need Close Below 21-DMA

*RES 4: 132.21 Daily Bull channel top B 

*RES 3: 132.07 Low May 16 now resistance 

*RES 2: 132.00 Daily Bull channel top A 

*RES 1: 131.93 High Sept 7

*PREVIOUS CLOSE: 131.92

*SUP 1: 131.86 Hourly support Sept 7

*SUP 2: 131.77 Alternating hourly support/resistance

*SUP 3: 131.65 Daily Bull channel base B

*SUP 4: 131.53 Low Sept 5

*COMMENTARY: The dip below the bull channel base off July 28 lows (131.65)

lacked follow through with the aggressive rally seeing pressure  on 162.00-21

where bull channel tops are located. The Bollinger top (131.902) remains the key

concern for bulls. Layers of support are building with bears now needing a close

below 131.77 to ease bullish pressure and return focus to 131.53-64. Below the

21-DMA (131.40) is needed to hint at a shift lower in focus.

SCHATZ TECHS: (Z17) Bears Need Close Below 112.245

*RES 4: 112.354 100-DMA 

*RES 3: 112.305 Low Mar 7 now resistance 

*RES 2: 112.290 Daily Bull channel top 

*RES 1: 112.270 High Sept 7

*PREVIOUS CLOSE: 112.265

*SUP 1: 112.245 Hourly support Sept 7 

*SUP 2: 112.215 Hourly resistance Sept 7 now support 

*SUP 3: 112.195 Hourly resistance Sept 7a now support 

*SUP 4: 112.165 Low Sept 7, Daily Bull channel base

*COMMENTARY: Support has again emerged on a dip with bulls taking comfort in the

bounce from ahead of the daily bull channel base that sees pressure back on the

daily bull channel top and 112.290-305 region. Bulls look for a close above

112.290 to initially pressure the 100-DMA. bears now need a close below 112.245

to gain breathing room and below 112.215 to signal a correction back to

112.119-165 where the 21-DMA is located.

GILT TECHS: (Z17) Pressure Returns To Bull Channel Top

*RES 4: 129.19 Monthly High June 14 

*RES 3: 128.68 High June 21 

*RES 2: 128.20 Daily Bull channel top 

*RES 1: 128.15 High Sept 7

*PREVIOUS CLOSE: 128.12

*SUP 1: 127.74 High Sept 6 now support 

*SUP 2: 127.24 Hourly support Sept 5 

*SUP 3: 127.03 21-DMA 

*SUP 4: 127.02 Daily Bull channel base

*COMMENTARY: The 127.24 support confirmed significance with the contract

bouncing aggressively from this level to return pressure to the bull channel top

and overall focus now on 128.68-129.19. The Bollinger top (127.87) remains the

key concern for bulls. Initial support is noted at 127.74 with bears needing a

close below to ease bullish pressure and hint at a correction back to 127.02-24

where the 21-DMA is noted.

SHORT-STERLING TECHS: (Z17) Bounces From Support Region

*RES 4: 99.728 Daily Bull channel top

*RES 3: 99.690 2017 Highs June 12 & 13

*RES 2: 99.670 High Sept 5 & 6

*RES 1: 99.661 Bollinger band top

*PREVIOUS CLOSE: 99.660

*SUP 1: 99.640 Repeated Daily Lows Aug-Sept

*SUP 2: 99.630 Repeated Daily Lows Aug

*SUP 3: 99.629 Bollinger band base

*SUP 4: 99.620 Low Aug 8 & 9

*COMMENTARY: The dip below the daily bull channel base 99.653 and 21-DMA

(99.645) lacked follow through with bulls managing a relatively bullish close

that retains focus on the 99.670 resistance. Bulls need a close above 99.670 to

reconfirm focus on 99.690-728 where the bull channel top is situated. Bears look

for a close below 99.630 to ease bullish pressure and shift immediate focus to

99.590-610 where 55 & 100-DMAs are located.

EURIBOR TECHS: (H18) Bears Need Close Below 100.300

*RES 4: 100.360 - High Oct 6 

*RES 3: 100.330 - High Oct 19 

*RES 2: 100.325 - 2017 High Sept 5-7 

*RES 1: 100.321 - Bollinger band top

*PREVIOUS CLOSE: 100.320

*SUP 1: 100.312 - 21-DMA

*SUP 2: 100.309 - Daily Bull channel base

*SUP 3: 100.300 - Low Aug 11 - 16

*SUP 4: 100.291 - 55-DMA

*COMMENTARY: The contract remains supported ahead of the 21-DMA as it has for

most of August with fresh 2017 highs seen Tuesday. Bulls remain focused on the

100.330-415 resistance region where the bull channel top is located. The

Bollinger top remains the key concern for bulls and limits follow through. Bears

continue to look for a close below 100.300 to ease bullish pressure and below

100.275 to signal a correction that initially targets the 200-DMA (100.253).

US 10-YR FUTURE TECHS: (Z17) Immediate Focus On 127-270

*RES 4: 130-140 - Monthly High Nov 9 2016 

*RES 3: 128-220 - Low Oct 28 now resistance 

*RES 2: 127-270 - High Nov 10, Daily bull channel top 

*RES 1: 127-250 - Hourly resistance Sept 8

*PRICE: 127-210 @ 0430GMT

*SUP 1: 127-140 - Hourly support Sept 7

*SUP 2: 126-300 - High Sept 4 now support

*SUP 3: 126-240 - Low Sept 5

*SUP 4: 126-210 - 21-DMA

*COMMENTARY: Failure to trouble the key 126-300 support Thursday saw bulls

continue to dominate with immediate focus now on 127-270. Bulls need a close

above this level to shift focus to 128-220. The Bollinger top (127-180) remains

the key concern for bulls. Initial support is now noted at 127-140 with bears

needing a close below to gain breathing room. A close below 126-300 is needed to

shift focus back to 126-190/210 where the 21-DMA is noted.

US 10-YR YIELD TECHS: Closes Below 100-WMA

*RES 4: 2.166 - Hourly resistance Aug 31 

*RES 3: 2.148 - High Sept 5 

*RES 2: 2.115 - Hourly resistance Sept 5a 

*RES 1: 2.066 - Hourly resistance Sept 7

*PRICE: 2.046 @ 0430GMT

*SUP 1: 2.030 - 2017 Low Sept 8 

*SUP 2: 1.991 - Low Nov 10 

*SUP 3: 1.879 - High Nov 1 now support 

*SUP 4: 1.716 - Low Nov 9

*COMMENTARY: The close below the 100-WMA (2.054) adds weight to the bearish case

following fresh 2017 and 10mth lows. Bears look for a weekly close below the

100-WMA for increased significance. Immediate bearish focus has now shifted to

the 1.991 support. The 1.879 support is key with a close below to initially

target 1.716. Bulls now need a close above 2.115 to ease bearish pressure and

above 2.180 to shift initial focus back to 2.206-2.229.

EUROSTOXX50 TECHS: Capped Ahead Of 55-DMA & Channel Top 

*RES 4: 3529.99 High July 20 

*RES 3: 3497.29 High Aug 16 

*RES 2: 3471.33 Daily Bear channel top 

*RES 1: 3467.78 High Aug 23

*PREVIOUS CLOSE: 3447.66

*SUP 1: 3432.40 Hourly support Sept 6 

*SUP 2: 3417.01 Hourly resistance Sept 6 now support 

*SUP 3: 3395.03 Hourly resistance Aug 29 now support 

*SUP 4: 3373.52 Hourly support Aug 29

*COMMENTARY: The recovery from the week's low so far resulted in a pop higher

Thursday that remained capped ahead of the 55-DMA (3469.30) and daily bear

channel top. Bulls now look for a close above the bear channel top to confirm an

easing of bearish pressure and shift immediate focus to 3497.29-3539.48. Daily

studies have room to move but the Bollinger top (3479.16) is likely to limit

follow through. Bears need a close below 3395.03 to return focus to 3363.68.

--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com

[TOPICS: MTABLE]