MNI European Morning FI Technical Analysis

8 May 2018

By Kyle Shortland

Please click on this link to access MNI's daily European FI Technical Analysis

Pdf - http://tinyurl.com/nhjogts

BUND TECHS: (M18) Below 21-DMA To Ease Bullish Pressure

*RES 4: 160.26 Low Dec 13 now resistance

*RES 3: 159.99 Bollinger band top

*RES 2: 159.69 Monthly High Mar 28

*RES 1: 159.55 High Apr 18

*PREVIOUS CLOSE: 159.26

*SUP 1: 158.91 High May 2 now support

*SUP 2: 158.81 21-DMA

*SUP 3: 158.38 Low Apr 30

*SUP 4: 157.90 Hourly resistance Apr 26 now support

*COMMENTARY: Bullish confidence grew with a close above the 21-DMA that sees

immediate focus on 159.69 and bulls looking for a close above to shift initial

focus to 160.26-98 where Dec highs are noted. Bears still need a close below the

21-DMA to gain breathing room and below 158.38 to target a correction back to

157.34-43. Daily studies now approaching O/B are a concern for bulls. The

Bollinger top is expected to limit follow through on a break higher.

     BOBL TECHS: (M18) 131.070 Support Remains Key

*RES 4: 131.511 200-WMA 

*RES 3: 131.450 High Jan 23 (Cont) 

*RES 2: 131.353 Bollinger band top 

*RES 1: 131.310 High Apr 3

*PREVIOUS CLOSE: 131.160

*SUP 1: 131.080 100-WMA

*SUP 2: 131.070 High Apr 30 now support

*SUP 3: 130.880 Low May 3

*SUP 4: 130.780 Hourly resistance Apr 26 now support

*COMMENTARY: Bulls took comfort in the close above the 100-WMA that sees

immediate pressure on the 131.310 Apr high. Bulls look for a close above this

level to target the 131.511-905 region where the 200-WMA and bull channel top

are located. The Bollinger top is likely to limit follow through and is a

concern for bulls. Bears need a close below 131.070 to gain breathing room and

below 130.880 to shift focus to 130.510-683.

     SCHATZ TECHS: (M18) Topside Hesitation Less Than Ideal

*RES 4: 111.990 Monthly High Mar 28 

*RES 3: 111.946 Bollinger band top 

*RES 2: 111.945 Highs Apr 5 & 6 

*RES 1: 111.940 High May 4

*PREVIOUS CLOSE: 111.915

*SUP 1: 111.900 Low Nay 4 

*SUP 2: 111.875 Low Apr 27 

*SUP 3: 111.860 55-DMA 

*SUP 4: 111.830 Low Mar 14

*COMMENTARY: With bulls currently focused on a break of 111.945 needed to

confirm initial focus on 111.990 topside hesitation is less than ideal. Initial

support is now noted at 111.900 but bears look for a close below the 55-DMA to

confirm an easing of bullish pressure. Below 111.805 is then needed to confirm a

break of the 100-DMA (100.820) and shift immediate focus to 111.715. The

Bollinger top remains the key concern for bulls.

     GILT TECHS: (M18) Hesitating Ahead Of Apr High

*RES 4: 123.57 Low Dec 1 now resistance 

*RES 3: 123.03 High Apr 4 

*RES 2: 122.96 Bollinger band top 

*RES 1: 122.94 High May 4

*PREVIOUS CLOSE: 122.56

*SUP 1: 122.08 Hourly resistance May 2 now support 

*SUP 2: 121.58 55-DMA 

*SUP 3: 121.07 Low Mar 26 

*SUP 4: 120.69 Low Mar 21

*COMMENTARY: Support emerging on dips back towards the 55-DMA adds to bullish

confidence with immediate focus back on the 123.03 resistance. Bulls look for a

close above this level to initially target the daily bull channel top around

123.75. Daily studies approaching O/B are a concern for bulls. In saying that,

the 55-DMA support remains key with bears needing a close below to ease bullish

pressure and shift initial focus back to 120.69.

     SHORT-STERLING TECHS: (M18) Hesitating Ahead Of 200-DMA

*RES 4: 99.370 2018 High Jan 3

*RES 3: 99.340 Repeated Daily Highs Jan

*RES 2: 99.310 High Feb 7

*RES 1: 99.294 200-DMA

*PREVIOUS CLOSE: 99.280

*SUP 1: 99.270 Alternating daily support/resistance

*SUP 2: 99.240 Repeated daily lows Apr/May

*SUP 3: 99.230 100-DMA

*SUP 4: 99.210 High Apr 20 now support

*COMMENTARY: The contract found support ahead of the 100-DMA providing the base

for a rally and close above 99.270 Thursday that sees immediate focus on the

200-DMA. Bulls look for a close above the 200-DMA to shift focus to 99.340-370

where 2018 highs are noted. Bears now look for a close below 99.270 to gain

breathing room and below 99.210 to confirm traction below the 100-DMA and

initially target 99.145-160.

     EURIBOR TECHS: (Z18) Bulls Focused On 100.320-340

*RES 4: 100.340 - High Oct 10 2016 

*RES 3: 100.325 - High Oct 19 2016, High Dec 15 

*RES 2: 100.320 - Repeated Daily highs Dec 

*RES 1: 100.310 - 2018 High Repeatedly May

*PREVIOUS CLOSE: 100.310

*SUP 1: 100.301 - 21-DMA

*SUP 2: 100.295 - Repeated daily lows Apr

*SUP 3: 100.289 - Daily Bull channel base off 2018 Low, 55-DMA

*SUP 4: 100.275 - High Mar 7 now support

*COMMENTARY: Having found support at 100.295 bulls took comfort in fresh 2018 &

19mth highs with immediate focus now on 100.320-340. Bulls have room to move

before studies become O/B. Bears now need a close below 100.295 to ease bullish

pressure and to shift initial focus back to 100.273-289 where 55 & 100-DMAs and

the bull channel base off 2018 lows are noted.

     US 10-YR FUTURE TECHS: (M18) Bulls Now Need Close Above 120-06+

*RES 4: 120-20+ Hourly resistance Apr 12

*RES 3: 120-06+ High Apr 19

*RES 2: 120-02+ Low Apr 18 now resistance

*RES 1: 119-27+ 21-DMA

*PRICE: 119-20 @ 0430GMT

*SUP 1: 119-18  Low May 4

*SUP 2: 119-08  Low May 2

*SUP 3: 118-31  2018 Low Apr 25

*SUP 4: 118-24  Low Apr 13 2011

*COMMENTARY: Bulls took comfort in support emerging on the dip below 119-09

Wednesday with bears now needing a close below 119-08 to ease renewed bullish

pressure and return initial focus to 2018 lows. Correcting O/S daily studies

remain the key concern for bears. Bulls look for a close above Y120-06+ to

initially target a correction back to 120-20+/24 and above 120-24 to shift focus

to 121-01+/12 with the 100-DMA at 121-01+.

     US 10-YR YIELD TECHS: Bears Now Need Close Below 55-DMA

*RES 4: 3.041 - 2014 High Jan 2 

*RES 3: 3.035 - 2018 High Apr 25 

*RES 2: 3.018 - Hourly support Apr 26 now resistance 

*RES 1: 2.996 - High May 2

*PRICE: 2.953 @ 0430GMT

*SUP 1: 2.916 - 21-DMA 

*SUP 2: 2.904 - Low Apr 20 

*SUP 3: 2.876 - High Apr 18 now support 

*SUP 4: 2.871 - 55-DMA

*COMMENTARY: Despite remaining heavy bulls took comfort in support emerging back

towards the 21-DMA Friday. The 55-DMA is seen as key support this week with

bears needing a close below to add weight to the case for a move back to

2.717-753 where the 100-DMA (2.753) is situated. Bulls now look for a close

above 2.996 to gain breathing room and above 3.073 to shift focus 3.183-223

where the weekly bull channel top is noted.

     EUROSTOXX50 TECHS: 200-DMA Support Key This Week

*RES 4: 3636.22 Monthly High Feb 1 

*RES 3: 3600.36 Low Jan 31 now resistance 

*RES 2: 3581.30 Bollinger band top 

*RES 1: 3570.95 High Feb 2

*PREVIOUS CLOSE: 3564.19

*SUP 1: 3540.14 Low May 7 

*SUP 2: 3523.00 Low May 3 

*SUP 3: 3513.19 200-DMA 

*SUP 4: 3502.91 Hourly support Apr 26

*COMMENTARY: Bulls take comfort in gains with immediate focus on 3570.95. Bulls

continue to look for a close above 3570.95 to reconfirm the bullish bias and

above 3600.36 to reconfirm focus on 2018 highs. Support layers building add to

bullish confidence with bears continuing to look for a close below the 200-DMA

to confirm an easing of bullish pressure and below 3464.35 to shift focus back

to 3383.17-3435.58 where the 55-DMA (3430.55) is situated.

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

[TOPICS: MTABLE]