MNI European Morning FI Technical Analysis

8 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) Bears Need Close Below 163.18

*RES 4: 164.68 Daily Bull channel top (off Oct 25 low)

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

*RES 2: 163.88 Daily Bull channel top (off Sept low)

*RES 1: 163.67 Highs Dec 1 & 7

*PREVIOUS CLOSE: 163.51

*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: 162.29 Daily Bull channel base (off Oct 25 low)

*COMMENTARY: Pressure remains on the 163.67 weekly high with the Bollinger band

top (163.69) the key concern with potential to limit follow through. A break

higher initially targets the top of the channel off Sept lows and then the top

of the channel off Oct 25 lows. Bears still need a close below 163.18 to ease

bullish pressure and below 162.64 to shift focus to layers of support

161.87-162.29 where the 55-DMA & a channel base are located.

BOBL TECHS: (H18) 132.530 Support Key Today

*RES 4: 133.015 Daily Bull channel top (Nov 30 low) 

*RES 3: 132.963 Daily Bull channel top (Oct 25 low) 

*RES 2: 132.850 Low May 30 now resistance 

*RES 1: 132.740 High Dec 7

*PREVIOUS CLOSE: 132.690

*SUP 1: 132.530 Low Dec 6

*SUP 2: 132.430 Hourly resistance Dec 5 now support

*SUP 3: 132.340 Hourly support Dec 5

*SUP 4: 132.250 Low Dec 4

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

regain the upper hand with a break of 132.700 shifting focus to 132.850-133.015

where bull channel tops are situated. Bears continue to look for a close below

132.530 to ease immediate bullish pressure and below 132.250 to shift focus back

to 131.970-132.177 where a bull channel base and 55-DMA are located. The

Bollinger top (132.657) is the key concern for bulls.

SCHATZ TECHS: (H18) 112.185 Support Key Today

*RES 4: 112.455 Monthly High Mar 1 

*RES 3: 112.410 High Mar 7 

*RES 2: 112.325 High Apr 18 

*RES 1: 112.270 Monthly high Sept 7

*PREVIOUS CLOSE: 112.220

*SUP 1: 112.185 Monthly High Nov 8 now support 

*SUP 2: 112.122 21-DMA 

*SUP 3: 112.095 55-DMA 

*SUP 4: 112.025 Monthly Lows Oct 26 & Nov 30

*COMMENTARY: 112.025-185 sideways trading that defined November came to an end

Wednesday with a close above 112.185 that shifted bullish focus to 112.270-325.

The Bollinger top (112.210) is the key concern for bulls with potential to limit

follow through. Bears continue to look for a close below 112.185 to ease bullish

pressure and below the 55-DMA to see pressure back on the 112.025 support,

monthly lows and double daily bottom.

GILT TECHS: (H18) Broad Range Trading Reconfirmed

*RES 4: 125.50 Daily Bull channel top 

*RES 3: 125.21 High Sept 15 

*RES 2: 124.94 High Nov 8 

*RES 1: 124.82 Bollinger band top

*PREVIOUS CLOSE: 124.46

*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: 123.63 55-DMA

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

trade sideways 123.12-124.94. The topside failure ahead of 124.94 Wednesday has

been followed up with losses that see the contract pressuring 124.17. Bears need

a close below this level to shift initial focus back to 123.63-77 where the

55-DMA is situated. Bulls need a close above 125.21 to reconfirm a bullish bias

with focus shifting to 125.50-99 where the daily bull channel top is noted.

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

*RES 4: 99.450 Low Sept 13 now resistance

*RES 3: 99.440 100-DMA

*RES 2: 99.410 Repeated Daily highs

*RES 1: 99.407 Bollinger band top

*PREVIOUS CLOSE: 99.400

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

*SUP 2: 99.363 55-DMA

*SUP 3: 99.350 Alternating daily support/resistance

*SUP 4: 99.310 Low Nov 1

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

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

bias with initial focus shifting to 99.440-487 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) Pressuring Key Resistance

*RES 4: 100.380 - Low Sept 27 2016 now resistance 

*RES 3: 100.340 - High Oct 10 2016 

*RES 2: 100.325 - High Oct 19 2016 

*RES 1: 100.320 - Monthly Highs Oct & Nov

*PREVIOUS CLOSE: 100.320

*SUP 1: 100.315 - Repeated daily highs Nov now support

*SUP 2: 100.305 - 55-DMA

*SUP 3: 100.295 - Low Dec 1

*SUP 4: 100.294 - 100-DMA

*COMMENTARY: Having recently found support ahead of the 55-DMA bulls take

comfort in pressure returning to the 100.320-325 resistance region. Bulls now

need a close above 100.325 to shift focus to 100.340-380 last seen in Sept/Oct

2016. Initial support is noted at 100.315 with bears needing a close below to

ease bullish pressure and below the 55-DMA to shift focus back to 100.294-295

where the 100-DMA is noted.

US 10-YR FUTURE TECHS: (H18) Remains Capped Ahead of 55-DMA

*RES 4: 125-00 High Nov 28 

*RES 3: 124-26+ Daily Bear channel top 

*RES 2: 124-23+ 55-DMA 

*RES 1: 124-16+ Hourly support Dec 7 now resistance

*PRICE: 124-10+ @ 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: 123-08+ Daily Bear channel base

*COMMENTARY: Bears take comfort in continued topside failures ahead of the

55-DMA and bear channel top. Bulls need a close above 125-00 to confirm breaks

and shift immediate focus to 125-06+/14+ and overall focus to 125-25+. The

sell-off Thursday leaves the contract looking heavy once more with focus having

returned to 123-27/124-02+ where monthly lows are noted. Below 123-27 targets

the bear channel base 123-08+.

US 10-YR YIELD TECHS: Remains Supported Ahead Of 200-DMA

*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: 2.372 @ 0530GMT

*SUP 1: 2.351 - Hourly resistance Dec 7 now support 

*SUP 2: 2.303 - 200-DMA 

*SUP 3: 2.283 - 100-DMA 

*SUP 4: 2.273 - Monthly Low Oct 13

*COMMENTARY: The yield continues to find support ahead of the 200-DMA and key

2.273-2.303 support region where the 100-DMA and 21-WMA are also noted. The

close above Wednesday's high (2.363) eases bearish pressure and sees focus back

on the 2.437 resistance. Bulls need a close above this level to return pressure

to 2.477 Oct highs with a close above then targeting 2017 highs. Bears need a

close below 2.351 to gain breathing room.

EUROSTOXX50 TECHS: 3497.29 & 3642.10 Levels Key 

*RES 4: 3642.10 Low Nov 8 now resistance 

*RES 3: 3620.01 High Nov 10 

*RES 2: 3598.08 55-DMA 

*RES 1: 3585.68 High Dec 4

*PREVIOUS CLOSE: 3573.13

*SUP 1: 3558.50 Low Dec 7 

*SUP 2: 3547.56 Hourly resistance Dec 6 now support 

*SUP 3: 3526.64 200-DMA 

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

*COMMENTARY: Despite having looked heavy Wednesday, support continued to emerge

on dips back towards the 200-DMA. Bulls still look for a close above 3642.10 to

confirm traction above the bear channel top (3607.86) and 55-DMA, initially

targeting 2017 highs. Bears now need a close below 3497.29 to confirm a break of

the 200-DMA and 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]