MNI European Morning FI Technical Analysis

10 November 2017

By Kyle Shortland

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BUND TECHS: (Z17) Immediate Focus On 161.93-162.23

*RES 4: 163.63 High Nov 8, Bollinger band top

*RES 3: 163.40 High Nov 9

*RES 2: 163.22 Hourly support Nov 8 now resistance

*RES 1: 162.95 Low Nov 7 now resistance

*PREVIOUS CLOSE: 162.78

*SUP 1: 162.48 Low Nov 9

*SUP 2: 162.29 21-DMA

*SUP 3: 162.23 Hourly res Oct 27 now support

*SUP 4: 162.00 High Oct 26 now support

*COMMENTARY: The lack of follow through on fresh 3mth highs left the contract

looking heavy with bearish focus having shifted to 161.93-162.23 and overall

focus on the bull channel base (161.29). Bulls now need a close above 162.95 to

confirm a false break lower and above 163.40 to retain focus on 163.63-00. Daily

studies correcting from modestly O/B levels adds weight to the bearish case.

BOBL TECHS: (Z17) Correcting O/B Studies Weighing

*RES 4: 132.060 High Nov 8 

*RES 3: 132.010 Hourly support Nov 8 now resistance 

*RES 2: 131.920 Hourly support Nov 7 now resistance 

*RES 1: 131.880 Hourly resistance Nov 9

*PREVIOUS CLOSE: 131.840

*SUP 1: 131.770 55-WMA

*SUP 2: 131.750 Low Nov 3

*SUP 3: 131.710 Hourly support Nov 2

*SUP 4: 131.634 21-DMA

*COMMENTARY: Topside follow through was lacking on fresh 3mth highs Wednesday

resulting in an easing of bullish pressure and focus now on 131.634-770 where

the 55-WMA and 21-DMA are noted. bears now look for a close below the 21-DMA to

hint at a move back to 131.074-090 with below the 55-DMA (131.484) to confirm.

Bulls now need a close above 131.92 to shift focus back to 132.010-060.

SCHATZ TECHS: (Z17) 112.230 & 112.315 Levels Key

*RES 4: 112.445 Daily Bull channel top 

*RES 3: 112.365 Monthly high Sept 5 (Cont) 

*RES 2: 112.333 Bollinger band top 

*RES 1: 112.315 High Oct 27

*PREVIOUS CLOSE: 112.280

*SUP 1: 112.240 Low Oct 27, 21-DMA 

*SUP 2: 112.230 High Oct 19 now support 

*SUP 3: 112.200 Alternating hourly support/resistance 

*SUP 4: 112.192 55-DMA

*COMMENTARY: Hesitation ahead of previous week's highs remains a concern for

bulls. Bulls continue to look for a close above 112.315 to end correction talk

and confirm focus on 112.365-455. Bears continue to look for a close below

112.230 to confirm a break of the 21-DMA and shift focus to 112.180-192 where

the bull channel base and 55-DMA are situated. Daily studies correcting from

modestly O/B add weight to the bearish case.

GILT TECHS: (Z17) 124.95 Support Remains Key

*RES 4: 126.26 55-WMA 

*RES 3: 126.00 Low Sept 13 now resistance 

*RES 2: 125.87 High Nov 8 

*RES 1: 125.41 Hourly support Nov 9 now resistance

*PREVIOUS CLOSE: 125.13

*SUP 1: 124.95 Low Nov 7 

*SUP 2: 124.66 Hourly support Nov 2 

*SUP 3: 124.52 21-DMA 

*SUP 4: 123.84 Low Nov 1

*COMMENTARY: The lack of follow through on the break above 125.51 Wednesday left

the contract looking a little heavy and sees focus on the 124.95 support. Bears

look for a close below to confirm breaks of 55 (125.02) & 100 (125.30) DMAs,

shifting immediate focus to the 21-DMA (124.52) and overall focus to 123.84.

Bulls now look for a close above 126.00 to reconfirm a bullish bias initially

targeting 126.67-80.

SHORT-STERLING TECHS: (H18) 99.410 Resistance Remains Key

*RES 4: 99.450 Low Sept 13 now resistance

*RES 3: 99.410 High Sept 15

*RES 2: 99.405 55-DMA

*RES 1: 99.400 High Nov 3, 6 - 9

*PREVIOUS CLOSE: 99.390

*SUP 1: 99.390 Repeated daily lows

*SUP 2: 99.370 Hourly resistance Oct 23 now support

*SUP 3: 99.350 Alternating daily support/resistance

*SUP 4: 99.310 Low Nov 1

*COMMENTARY: Bulls regained the upper hand with focus having returned to

99.405-410. Bulls look for a close above 99.410 to add support to their case for

a test of 100 (99.454) & 200 (99.493) DMAs. Layers of support remain with bears

needing a close below 99.370 to ease bullish pressure and below 99.350 to shift

focus back to 99.300-310 where 2017 lows are noted.

EURIBOR TECHS: (H18) Bulls Need Close Above 100.330

*RES 4: 100.375 - Daily Bull channel top 

*RES 3: 100.360 - High Oct 6 

*RES 2: 100.330 - High Oct 19 

*RES 1: 100.325 - 2017 Repeated Daily Highs Sept, Oct & Nov

*PREVIOUS CLOSE: 100.325

*SUP 1: 100.320 - Alternating daily support/resistance

*SUP 2: 100.310 - Low Oct 26

*SUP 3: 100.305 - Repeated Daily Lows Oct

*SUP 4: 100.300 - Alternating daily sup/res

*COMMENTARY: The dip below the 21 (100.319) & 55 (100.314) DMAs in previous

weeks lacked follow through with the contract recovering to repeatedly retest

2017 highs. Bulls need a close above 100.330 to target 100.360/375. Bears look

for a close below 100.310 to confirm breaks of 21 & 55-DMAs and ease bullish

pressure. Below 100.300 is needed to confirm a break of the 100-DMA, end bullish

hopes and shift focus back to 100.275-285.

US 10-YR FUTURE TECHS: (Z17) 124-23+/125-01+ Support Key

*RES 4: 125-23+ Bollinger band top 

*RES 3: 125-22+ 100-DMA, 55-DMA 

*RES 2: 125-16+ Hourly support Oct 16 now resistance 

*RES 1: 125-10+ High Nov 9

*PRICE: 125-04 @ 0530GMT

*SUP 1: 125-01+ Low Nov 9

*SUP 2: 124-28+ Hourly support Nov 1

*SUP 3: 124-23 Low Oct 30 now resistance

*SUP 4: 124-06 Low Oct 25

*COMMENTARY: The correction lower from the failure ahead of 125-16+ this week is

finding support around the 124-23/125-01+ support region. Bears need a close

below 124-28+ to ease bullish pressure and below 124-23 to reconfirm immediate

focus on the 124-00+/06 support region where the rising weekly TL off 2017 lows

is noted. Above 125-16+ is now needed to confirm initial focus on 55 & 100-DMAs.

US 10-YR YIELD TECHS: 2.304 & 2.365 Levels Key

*RES 4: 2.401 - High Nov 1 

*RES 3: 2.385 - Hourly support Nov 1 now resistance 

*RES 2: 2.365 - Hourly resistance Nov 2 

*RES 1: 2.345 - High Nov 9

*PRICE: 2.342 @ 0530GMT

*SUP 1: 2.304 - Low Nov 8 

*SUP 2: 2.278 - Low Oct 16 

*SUP 3: 2.273 - 55-DMA 

*SUP 4: 2.267 - 100-DMA

*COMMENTARY: Bears failed to capitalise on the marginal close below the 200-DMA

(2.311) with bulls taking comfort in Wednesday's recovery. Layers of resistance

remain. Bulls need a close above 2.365 to confirm a break of the 21-DMA (2.356)

easing bearish pressure, above 2.419 to return initial focus to 2.477 and

overall focus to 2.544-580. Bears now need a close below 2.304 to confirm a

break of the 200-DMA and target 2.245-278.

EUROSTOXX50 TECHS: Closes Below Bull Channel Base 

*RES 4: 3708.82 2017 High Nov 1 

*RES 3: 3695.32 High Nov 7 

*RES 2: 3669.94 Hourly support Oct 31 now resistance 

*RES 1: 3639.81 Alternating daily support/resistance

*PREVIOUS CLOSE: 3612.50

*SUP 1: 3580.21 Low Oct 26 

*SUP 2: 3568.16 Bollinger band base 

*SUP 3: 3562.39 55-DMA 

*SUP 4: 3556.50 Low Sept 28

*COMMENTARY: The lack of follow through on recent 2017 highs and hesitation

ahead of 3714.26 has seen the index break lower and the close below the bull

channel base (3633.27) shifting initial focus to 3556.50-3580.21 where the

55-DMA and Bollinger base are noted. Correcting daily studies add weight to the

bearish case. Bulls now look for a close above 3639.81 to ease bearish pressure

and above 3669.94 to shift focus back to 2017 highs.

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