MNI European Morning FI Technical Analysis

1 December 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) Bulls Need Close Above 162.97

*RES 4: 163.63 High Nov 8

*RES 3: 163.40 High Nov 9

*RES 2: 163.32 High Nov 28

*RES 1: 162.97 Hourly support Nov 28 now resistance

*PREVIOUS CLOSE: 162.69

*SUP 1: 162.52 Hourly support Nov 30

*SUP 2: 162.24 Low Nov 30

*SUP 3: 162.05 55-DMA

*SUP 4: 161.92 Daily Bull channel base off July 7 low

*COMMENTARY: The correction lower saw the contract dip back towards layers of

support 161.53-162.05 where 55 & 100-DMAs and the bull channel base are noted.

The lack of follow through hints at a bounce back towards 163.32-63 with a close

above 162.97 to confirm. Until a close above 162.97 is seen bears remain focused

on the key support region with a close below the 100-DMA to end bullish hopes

and shift immediate focus to 160.24-76.

BOBL TECHS: BOBL: (Z17) 131.290 Support Key

*RES 4: 131.850 High Nov 21 

*RES 3: 131.820 High Nov 28 

*RES 2: 131.650 Hourly resistance Nov 29 

*RES 1: 131.580 Hourly support Nov 29 now resistance

*PREVIOUS CLOSE: 131.480

*SUP 1: 131.350 Low Nov 30

*SUP 2: 131.290 Low Nov 22, 100-DMA, Channel base

*SUP 3: 131.090 Low Oct 25

*SUP 4: 130.960 Monthly Low Oct 6

*COMMENTARY: The lack of downside follow through with the pair finding support

ahead of the now key 131.290 level where the daily bull channel base and 100-DMA

are located. Bears now look for a close below 131.290 to target 130.90-131.09.

The 131.58-65 resistance remains key. Bulls need a close above this region to

ease immediate bearish pressure. Above 131.880 is needed to reconfirm a bullish

bias initially targeting 132.060.

SCHATZ TECHS: (Z17) Above 21-DMA To Shift Focus Higher

*RES 4: 112.249 21-DMA 

*RES 3: 112.240 Low Oct 27 now resistance 

*RES 2: 112.235 High Nov 28 

*RES 1: 112.210 High Nov 30

*PREVIOUS CLOSE: 112.175

*SUP 1: 112.150 Low Oct 25 

*SUP 2: 112.130 100-DMA 

*SUP 3: 112.105 Low Oct 6 

*SUP 4: 112.090 Low Sept 28

*COMMENTARY: The contract edges closer to the 112.130-150 support region where

the 100-DMA is noted following another failure to gain traction above the 55-DMA

(112.205). Bears continue to look for a close below the 100-DMA to pressure the

key 112.065-105 supports. O/S studies looking to correct and the Bollinger base

(112.179) remain concerns for bears. Bulls now need a close above 112.210 to

ease immediate bearish pressure.

GILT TECHS: (H18) Supported Ahead Of Channel Base

*RES 4: 124.60 High Nov 28 

*RES 3: 124.18 Low Nov 27 now resistance 

*RES 2: 123.89 High Nov 29 

*RES 1: 123.64 High Nov 30

*PREVIOUS CLOSE: 123.60

*SUP 1: 123.33 Bollinger band base 

*SUP 2: 123.12 Low Nov 30 

*SUP 3: 123.05 Daily Bear channel base 

*SUP 4: 122.44 Monthly Low Oct 25

*COMMENTARY: The correction lower from 124.60 saw the contract dip back towards

the bear channel base before recovering to flirt with the 55-DMA (123.52). With

daily studies remaining well placed for further downside bulls look for a close

above 123.89 to ease bearish pressure and above 124.18 to shift focus back to

124.60-94. While 123.89 caps bears focus on the channel base and then tests of

122.44 Oct lows.

SHORT-STERLING TECHS: (H18) 99.350 & 99.410 Levels Remain Key

*RES 4: 99.450 Low Sept 13 now resistance

*RES 3: 99.444 100-DMA

*RES 2: 99.424 High Sept 15

*RES 1: 99.410 High Sept 15 & Nov 22-27

*PREVIOUS CLOSE: 99.390

*SUP 1: 99.370 Low Nov 3, 28 & 29

*SUP 2: 99.358 55-DMA

*SUP 3: 99.350 Alternating daily support/resistance

*SUP 4: 99.310 Low Nov 1

*COMMENTARY: Hesitation at the 99.410 level resulted in a correction back to the

99.350-370 region where the 55-DMA is located. Bears look for a close below

99.370 to ease bullish pressure and below 99.350 confirm a break of the 55-DMA

and shift focus back to 99.300-310 where 2017 lows are noted. Bulls continue to

look for a close above 99.410 to add support to their case for a test of 100

(99.444) & 200 (99.490) DMAs.

EURIBOR TECHS: (M18) 100.305-315 Resistance Now Key

*RES 4: 100.315 - Repeated daily highs Nov 

*RES 3: 100.312 - 21-DMA 

*RES 2: 100.305 - Low Nov 24 & 27 - 28 now resistance 

*RES 1: 100.303 - 55-DMA

*PREVIOUS CLOSE: 100.300

*SUP 1: 100.291 - 100-DMA

*SUP 2: 100.288 - 21-WMA

*SUP 3: 100.285 - Repeated Daily lows Oct

*SUP 4: 100.275 - Monthly Low Sept 28

*COMMENTARY: Narrow sideways trading came to an end with a sell-off and close

below the 55-DMA. Follow through has been lacking with the contract bouncing

from ahead of layers of support 100.285-291 where the 100-DMA and 21-WMA are

noted. Bears now need a close below 100.285 to shift initial focus to

100.250-275 where monthly lows and the 100-WMA are located. Bulls now need a

close above 100.305 to ease bearish pressure.

US 10-YR FUTURE TECHS: (H18) 124-06+/124-19 Resistance Region Now Key

*RES 4: 124-27+ 55-DMA 

*RES 3: 124-19  Low Nov 27 now resistance 

*RES 2: 124-15+ Hourly resistance Nov 29 

*RES 1: 124-06+ Low Nov 14 now resistance

*PRICE: 124-03 @ 0530GMT

*SUP 1: 123-27  Lows Oct 25 & 27

*SUP 2: 123-25  Low Mar 30

*SUP 3: 123-11+ Daily Bear channel base

*SUP 4: 123-07+ High Mar 13 now support

*COMMENTARY: The pop above the 55-DMA (124-27+) lacked follow through Tuesday

with the sell-off resulting in a close below 124-06+ and bears now focused on

layers of support 122-21+/123-27. Bulls now need a close above 124-06+ to gain

breathing room and above 124-19 to return pressure to 124-27+/125-00 where the

55-DMA and bear channel top (124-29+) are situated.

US 10-YR YIELD TECHS: Above 2.477 To Target 2017 Highs

*RES 4: 2.558 - Low Mar 13 now resistance 

*RES 3: 2.544 - High Mar 17 

*RES 2: 2.477 - Monthly High Oct 27 

*RES 1: 2.437 - High Nov 30

*PRICE: 2.410 @ 0530GMT

*SUP 1: 2.401 - Hourly resistance Nov 30 now support 

*SUP 2: 2.374 - Hourly support Nov 29 

*SUP 3: 2.356 - 21-DMA 

*SUP 4: 2.310 - Low Nov 28

*COMMENTARY: Pressure on the 200-DMA failed to produce a break lower with the

close above the 21-DMA Wednesday now seeing bulls initially focused on 2.477 Oct

highs. Bulls look for a close above this level to target 2.544-2.628 where 2017

highs are situated. Layers of support accumulating adds to bullish confidence.

Bears now need a close below 2.401 to gain breathing room and below the 21-DMA

to shift focus back to 2.273-3.305.

EUROSTOXX50 TECHS: Index Looking Offered 

*RES 4: 3670.47 Low Nov 6 now resistance 

*RES 3: 3642.10 Low Nov 8 now resistance 

*RES 2: 3620.01 High Nov 10 

*RES 1: 3603.50 Hourly resistance Nov 30

*PREVIOUS CLOSE: 3569.93

*SUP 1: 3559.13 Low Nov 28 

*SUP 2: 3545.07 Low Nov 23 

*SUP 3: 3536.21 Low Nov 20 

*SUP 4: 3519.35 Low Nov 15

*COMMENTARY: Topside follow through remains elusive following repeated spikes

above the 55-DMA (3594.98) and also the 21-DMA (3596.87). The 3642.10 resistance

is key with bulls needing a close above to confirm breaks of 21 & 55-DMAs with

overall focus returning to tests of 2017 highs. Bears remain focused on

3497.29-3536.21 where 100 (3535.87) and 200 (3520.63) DMAs are situated. Below

3497.29 then shifts focus to 3363.68 Aug lows.

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

[TOPICS: MTABLE]