MNI European Morning FI Technical Analysis

5 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) Bears Need Close Below 162.97

*RES 4: 164.52 Low Sept 1 now resistance (Cont)

*RES 3: 164.00 Low Aug 18 now resistance (Cont)

*RES 2: 163.92 High Dec 1

*RES 1: 163.46 Alternating hourly support/resistance

*PREVIOUS CLOSE: 163.27

*SUP 1: 162.97 Alternating hourly support/resistance

*SUP 2: 162.52 Hourly support Nov 30

*SUP 3: 162.44 Daily Bull channel base off Oct 25 low

*SUP 4: 162.24 Low Nov 30

*COMMENTARY: Having bounced from ahead of the 55-DMA last week, bulls have

failed to capitalise further with the contract dipping back towards 162.97

Monday. Bears continue to look for a close below 162.97 to ease bullish pressure

and shift focus to layers of support 161.64-162.44 where 55 & 100-DMAs and the

MT bull channel base are situated. Bulls now need a close above 163.46 to retain

immediate focus on the break of 164.00 needed to initially target 164.52-81.

BOBL TECHS: (Z17) 131.880 Resistance Remains Key

*RES 4: 131.992 Bollinger band top 

*RES 3: 131.920 Hourly support Nov 7 now resistance 

*RES 2: 131.880 Hourly resistance Nov 9, High Nov 15 

*RES 1: 131.770 High Dec 4

*PREVIOUS CLOSE: 131.730

*SUP 1: 131.580 Alternating hourly support/resistance

*SUP 2: 131.350 Low Nov 30

*SUP 3: 131.327 100-DMA

*SUP 4: 131.269 Daily Bull channel base (Off Sept Mthly Low)

*COMMENTARY: The dip Monday found support ahead of the 131.580 level with bears

continuing to look for a close below to return focus to 131.269-350 where the

bull channel base and 100-DMA are located. Below the channel base is needed to

end bullish hopes and shift focus back to 130.90-131.09. The 131.880 resistance

remains key. Bulls need a close above 131.880 to reconfirm a bullish bias

initially targeting 132.060.

SCHATZ TECHS: (Z17) 55-DMA Support Key

*RES 4: 112.365 Monthly high Sept 5 (Cont) 

*RES 3: 112.316 Bollinger band top 

*RES 2: 112.315 High Oct 27 

*RES 1: 112.285 High Nov 15

*PREVIOUS CLOSE: 112.255

*SUP 1: 112.245 Hourly support Dec 4 

*SUP 2: 112.209 55-DMA 

*SUP 3: 112.180 Hourly resistance Dec 1 now support 

*SUP 4: 112.160 Monthly Low Nov 30

*COMMENTARY: The bounce from ahead of the key 112.135-150 support region

resulted in an aggressive rally and bullish close Friday that sees immediate

focus back on 112.285-315. Bulls need a close above 112.315 to reconfirm a

bullish bias and initially target 112.365. The 112.209-245 support region is now

key. Bears need a close below 112.245 to ease bullish pressure and below the

55-DMA to shift focus back to 112.135-150 where the 100-DMA (112.140) is noted.

GILT TECHS: (H18) Rejected Ahead Of Range Top

*RES 4: 125.21 High Sept 15 

*RES 3: 124.94 High Nov 8 

*RES 2: 124.85 Bollinger band top 

*RES 1: 124.40 High Dec 4

*PREVIOUS CLOSE: 124.09

*SUP 1: 123.89 High Nov 29 now support 

*SUP 2: 123.64 High Nov 30 now support 

*SUP 3: 123.55 55-DMA 

*SUP 4: 123.31 Bollinger band base

*COMMENTARY: Having bounced from last week's fresh monthly lows sees the

contract continue to trade sideways confined to a 123.12-124.94 range. The

failure to capitalise on Friday's rally sees the contract settling back into the

broad range. Bears now need a close below 123.64 to shift focus back to tests of

123.12 with a close below initially targeting 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: 99.443 100-DMA

*RES 2: 99.410 High Sept 15 & Nov 22-27 & Dec 4

*RES 1: 99.406 Bollinger band top

*PREVIOUS CLOSE: 99.400

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

*SUP 2: 99.360 55-DMA

*SUP 3: 99.350 Alternating daily support/resistance

*SUP 4: 99.310 Low Nov 1

*COMMENTARY: The contract continues to trade sideways in a narrow 99.370-410

range. Bulls continue to look for a close above 99.410 to reconfirm a bullish

bias with initial focus shifting to 99.443-488 where 100 & 200-DMAs are noted.

The 99.350-370 support region remains key. Bears need a close below 99.350 to

confirm a break of the 55-DMA and initially target 99.300-310 where monthly lows

are situated.

EURIBOR TECHS: (M18) Bulls Still Need Close Above 100.315

*RES 4: 100.320 - Monthly High Oct 

*RES 3: 100.318 - Bollinger band top 

*RES 2: 100.315 - Repeated daily highs Nov 

*RES 1: 100.312 - 21-DMA

*PREVIOUS CLOSE: 100.310

*SUP 1: 100.304 - 55-DMA

*SUP 2: 100.295 - Low Dec 1

*SUP 3: 100.292 - 100-DMA

*SUP 4: 100.285 - Repeated Daily lows Oct

*COMMENTARY: The lack of downside follow through Thursday saw the contract

recover to retest the 100.315 resistance Friday. Bulls look for a close above

100.315 to confirm a break of the 21-DMA and above 100.320 to shift focus to

100.335 where the old bull channel top is situated. While 100.315 caps bears

focus on a close below 100.285 to end bullish hopes and shift initial focus to

100.270-275.

US 10-YR FUTURE TECHS: (H18) 123-27/29+ Support Region Key

*RES 4: 125-00 High Nov 28 

*RES 3: 124-25+ 55-DMA 

*RES 2: 124-19 Low Nov 27 now resistance 

*RES 1: 124-10+ High Dec 4

*PRICE: 124-06 @ 0530GMT

*SUP 1: 124-00+ Bollinger band base

*SUP 2: 123-29+ Monthly Low Nov 30

*SUP 3: 123-27 Lows Oct 25 & 27

*SUP 4: 123-10+ Daily Bear channel base

*COMMENTARY: Hesitation ahead of the 123-27/29+ region is less than ideal for

bears who look for a close below 123-27 to confirm focus on the daily bear

channel base. Initial resistance is now noted at 124-10+ with bulls needing a

close above to gain breathing room and shift initial focus to layers of

resistance 124-19/125-00. Overall bulls need a close above 125-00 to confirm

breaks of the channel top 124-28+ and 55-DMA.

US 10-YR YIELD TECHS: 2.273 & 2.477 Levels Remain Key

*RES 4: 2.544 - High Mar 17 

*RES 3: 2.477 - Monthly High Oct 27 

*RES 2: 2.437 - High Nov 30 

*RES 1: 2.424 - High Dec 1

*PRICE: 2.387 @ 0530GMT

*SUP 1: 2.371 - Low Dec 4 

*SUP 2: 2.310 - Low Nov 28 

*SUP 3: 2.304 - 200-DMA 

*SUP 4: 2.283 - 100-DMA

*COMMENTARY: The 2.477 Oct highs remain key with the yield rejected aggressively

ahead of this level Friday. Bulls look for a close above this level to target

2.544-2.628 where 2017 highs are situated. Volatility saw support levels taken

out before bouncing ahead of the 200-DMA. The 2.273 support remains key. Bears

need a close below to end bullish hopes and shift initial focus back to

2.171-185 where the 200-WMA is noted.

EUROSTOXX50 TECHS: Above 3642.10 To Initially Target 2017 Highs 

*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: 3595.20 55-DMA

*PREVIOUS CLOSE: 3576.22

*SUP 1: 3557.37 Hourly support Dec 4 

*SUP 2: 3522.78 200-DMA 

*SUP 3: 3519.35 Low Nov 15 

*SUP 4: 3515.57 Weekly Bull channel base (Off July 2016 low)

*COMMENTARY: Bears failed to take advantage of pressure on the 200-DMA with the

bounce easing immediate bearish pressure Monday. Bulls now look for a close

above 3642.10 to confirm traction above the bear channel top (3619.17) and

55-DMA, initially targeting 2017 highs. Bears now need a close below 3557.37 to

ease pressure on resistance layers and below 3497.29 to confirm a break of the

weekly bull channel base, with below 3467.78 to target 3363.68-3397.27.

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

[TOPICS: MTABLE]