MNI European Morning FI Technical Analysis

6 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: (H18) 162.64 Support Remains Key

*RES 4: 164.55 Daily Bull channel top (off Oct 25 Low)

*RES 3: 163.89 Low June 1 now resistance (Cont)

*RES 2: 163.83 Daily Bull channel top (off Sept Low)

*RES 1: 163.67 High Dec 1

*PREVIOUS CLOSE: 163.28

*SUP 1: 163.18 Hourly resistance Dec 5 now support

*SUP 2: 162.79 Hourly support Dec 5

*SUP 3: 162.64 Alternating hourly support/resistance

*SUP 4: 162.20 Hourly support Nov 30

*COMMENTARY: The 162.64 support confirmed significance with support emerging on

dips back towards this level and layers of support emerging adding to bullish

confidence. Bears continue to look for a close below 162.64 to ease bullish

pressure and shift focus to layers of support 161.49-93 where the 55-DMA is

located. Tuesday's relatively bullish close sees bulls initially focused on

163.67-89 with a close above targeting the ST bull channel top.

BOBL TECHS: (H18) Above 132.70 Targets Bull Channel Top

*RES 4: 132.940 Daily Bull channel top 

*RES 3: 132.700 Monthly High Nov 8 

*RES 2: 132.620 Bollinger band top 

*RES 1: 132.570 Low Nov 7 now resistance

*PREVIOUS CLOSE: 132.520

*SUP 1: 132.430 Hourly resistance Dec 5 now support

*SUP 2: 132.340 Hourly support Dec 5

*SUP 3: 132.250 Low Dec 4

*SUP 4: 132.141 55-DMA

*COMMENTARY: The recovery from last week's dips below the 55-DMA have seen bulls

regain the upper hand and focus back on 132.570-700 where the 55-DMA and Nov

highs are situated. Layers of support are accumulating with bears needing a

close below 132.430 to ease immediate bearish pressure and below 132.250 to

shift focus back to 131.970-132.141 where the bull channel base and 55-DMA are

located.

SCHATZ TECHS: (H18) 55-DMA & 112.185 Levels Key Today

*RES 4: 112.325 High Apr 18 

*RES 3: 112.270 Monthly high Sept 7 

*RES 2: 112.195 Bollinger band top 

*RES 1: 112.185 Monthly High Nov 8

*PREVIOUS CLOSE: 112.155

*SUP 1: 112.092 55-DMA 

*SUP 2: 112.047 Bollinger band base 

*SUP 3: 112.025 Monthly Lows Oct 26 & Nov 30 

*SUP 4: 111.945 Low Aug 8

*COMMENTARY: Sideways trading continues for the H18 contract with the double

daily bottom in place at 112.025 providing the impetus for a bounce back towards

recent range highs (112.185). Bulls need a close above 112.185 to indicate a

bullish bias and initially target 112.270. Bears look for a close below the

55-DMA to ease topside pressure and shift initial focus back to 112.025 with a

break lower indicating a bearish bias initially targeting 111.945.

GILT TECHS: (H18) 124.94-125.21 Resistance Region Key

*RES 4: 125.21 High Sept 15 

*RES 3: 124.94 High Nov 8 

*RES 2: 124.85 Bollinger band top, High Dec 1 

*RES 1: 124.49 Hourly support Dec 1 now resistance

*PREVIOUS CLOSE: 124.30

*SUP 1: 124.17 Hourly support Dec 5 

*SUP 2: 123.77 Hourly support Dec 1 

*SUP 3: 123.64 High Nov 30 now support 

*SUP 4: 123.57 55-DMA

*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 124.17 to gain breathing room and

below 123.64 to shift focus back to tests of 123.12. Bulls look for a close

above 125.21 to confirm initial focus on 125.99.

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

*RES 4: 99.450 Low Sept 13 now resistance

*RES 3: 99.442 100-DMA

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

*RES 1: 99.407 Bollinger band top

*PREVIOUS CLOSE: 99.400

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

*SUP 2: 99.361 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 99.442-488 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 repeatedly. 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: 125-06+ Monthly high Nov 8 

*RES 3: 125-00 High Nov 28 

*RES 2: 124-24+ 55-DMA 

*RES 1: 124-19 Low Nov 27 now resistance

*PRICE: 124-12 @ 0530GMT

*SUP 1: 124-02+ Low Dec 5

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

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

*SUP 4: 123-09+ 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. The marginal close above 124-10+ provides bulls hope and sees

focus back on the 124-19/125-00 region. Overall bulls need a close above 125-00

to confirm breaks of the channel top (124-27+) and 55-DMA and hint at a move

back to 125-25+.

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

*RES 4: 2.477 - Monthly High Oct 27 

*RES 3: 2.437 - High Nov 30 

*RES 2: 2.424 - High Dec 1 

*RES 1: 2.395 - High Dec 5

*PRICE: 2.351 @ 0530GMT

*SUP 1: 2.343 - 55-DMA 

*SUP 2: 2.330 - Daily Bull channel base 

*SUP 3: 2.303 - 200-DMA 

*SUP 4: 2.283 - 100-DMA

*COMMENTARY: Failure ahead of last week's high has left the yield looking heavy

and focus back on layers of support. Bears continue to look for a close below

2.273 to end bullish hopes and shift initial focus back to 2.171-185 where the

200-WMA is noted. Bulls now need a close above Tuesday's high to ease bearish

pressure and above 2.477 Oct highs to target 2.544-2.628 where 2017 highs are

situated.

EUROSTOXX50 TECHS: 3642.10 Resistance Remains 

*RES 4: 3642.10 Low Nov 8 now resistance 

*RES 3: 3620.01 High Nov 10 

*RES 2: 3596.81 55-DMA 

*RES 1: 3585.68 High Dec 4

*PREVIOUS CLOSE: 3570.57

*SUP 1: 3552.34 Low Dec 5 

*SUP 2: 3524.12 200-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 look for a close above

3642.10 to confirm traction above the bear channel top (3615.40) and 55-DMA,

initially targeting 2017 highs. Bears now need a close below 3552.34 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]