MNI European Morning FI Technical Analysis

29 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) Bulls Now Focused On 162.37-90

*RES 4: 162.90 Low Dec 14 now resistance (Cont)

*RES 3: 162.48 High Dec 20 (Cont)

*RES 2: 162.37 100-WMA, High Dec 27 (Cont)

*RES 1: 162.04 2018 High Jan 8 (Cont)

*PREVIOUS CLOSE: 161.97

*SUP 1: 161.52 Hourly support May 28

*SUP 2: 161.34 High May 25 now support, 55-WMA

*SUP 3: 160.29 High May 24 now support

*SUP 4: 159.84 High May 23 now support

*COMMENTARY: Gains continued Monday with the contract gaining traction above the

55-WMA (161.34) and bulls now focused on 162.37-90 where the 100-WMA is located.

O/B daily studies and the Bollinger band top (161.02) remain concerns for bulls.

Layers of support accumulating add to bullish confidence with bears now needing

a close below 161.34 to gain breathing room and below 160.29 to shift focus back

to 158.50-159.31 where 21 & 55-DMAs are found.

     BOBL TECHS: (M18) Bulls Focused On 132.570-133.140

*RES 4: 132.990 Low Sept 1 now resistance (Cont) 

*RES 3: 132.840 Low Aug 25 now resistance (Cont) 

*RES 2: 132.700 Monthly High Dec 8 (Cont)

*RES 1: 132.570 2018 High May 25

*PREVIOUS CLOSE: 132.550

*SUP 1: 132.340 Hourly support May 28

*SUP 2: 132.180 High May 25 now support

*SUP 3: 132.030 Alternating hourly support/resistance

*SUP 4: 131.750 High May 24 now support, Low May 28

*COMMENTARY: Bulls take comfort in support holding at 131.750 and providing the

base for fresh 2018 & 6mth highs again Monday. Bulls now focus on the

132.570-133.140 region. O/B studies and the Bollinger top (132.049) remain key

concerns for bulls. Bears now look for a close below 132.180 to gain breathing

room and below 131.620 to target a correction back to 55 & 100-DMAs

(131.002-131.207).

     SCHATZ TECHS: (M18) Bulls Targeting Double Monthly Top 112.365

*RES 4: 112.430 High Apr 20 2017 (Cont) 

*RES 3: 112.365 Monthly highs Dec 6 & Sept 5 

*RES 2: 112.305 Low Dec 6 (Cont) now resistance 

*RES 1: 112.235 2018 High May 28, High Dec 8 (Cont)

*PREVIOUS CLOSE: 112.230

*SUP 1: 112.160 Hourly resistance May 28 now support 

*SUP 2: 112.115 High Dec 18 (Cont) & May 25 now support 

*SUP 3: 112.035 Low May 28 

*SUP 4: 111.985 Low May 24

*COMMENTARY: Bulls remain firmly in control and following the close above the

weekly bear channel top off 2017 highs Monday sees focus on tests of the double

monthly top at 112.365. O/B studies and the Bollinger top (112.104) remain key

concerns for bulls. Bears now look for a close below 112.115 to ease bullish

pressure and below 112.035 to shift focus back to 111.918-947 where 21 & 55-DMAs

are located.

     GILT TECHS: (M18) 122.74 Support Key This Week

*RES 4: 125.17 2018 High Jan 2 

*RES 3: 124.84 55-WMA 

*RES 2: 123.99 Daily Bull channel top

*RES 1: 123.65 High May 25

*PREVIOUS CLOSE: 123.32

*SUP 1: 123.03 High Apr 4 now support 

*SUP 2: 122.74 High May 24 now support 

*SUP 3: 122.32 High May 23 now support 

*SUP 4: 121.93 High May 21 now support

*COMMENTARY: Gains last week resulted in a close above the 200-WMA (122.31) and

the weekly bear channel top off Sept 2017 highs. and see bulls now focused on

the 123.99-124.84 region where the 55-WMA is located. The Bollinger top (123.08)

is the key concern for bulls. Bears now look for a close below 122.74 to ease

bullish pressure and target a correction back to 121.78-92 where 55 & 100-DMAs

are noted.

     SHORT-STERLING TECHS: (M18) Bears Need Close Below 99.345

*RES 4: 99.416 100-WMA

*RES 3: 99.398 Bollinger band top

*RES 2: 99.390 Lows Dec 5 & 8, Low Feb 8 now resistance

*RES 1: 99.385 2018 High May 23

*PREVIOUS CLOSE: 99.375

*SUP 1: 99.345 Low May 23

*SUP 2: 99.335 Lows May 21 & 22

*SUP 3: 99.325 Low May 17

*SUP 4: 99.305 Lows May 14 & 15

*COMMENTARY: Fresh 2018 highs lacked follow through which is less than ideal

given O/B daily studies and the proximity of the Bollinger band top. In saying

that, bulls currently focus on 99.416-465 where the 100-WMA and weekly bear

channel top are located. Bears now look for a close below 99.345 to gain

breathing room and below 99.325 to pressure 99.283-300 where 21 & 200-DMAs are

situated.

     EURIBOR TECHS: (Z18) Bears Need Close Below 100.250

*RES 4: 100.295 - 55-DMA 

*RES 3: 100.293 - 21-DMA 

*RES 2: 100.280 - High May 28 

*RES 1: 100.277 - 100-DMA

*PREVIOUS CLOSE: 100.265

*SUP 1: 100.258 - 200-DMA

*SUP 2: 100.250 - Low Feb 26

*SUP 3: 100.240 - Low Jan 29

*SUP 4: 100.233 - Weekly Bollinger band base

*COMMENTARY: Pressure on the 100-DMA and 100.275 took their toll with an

aggressive sell-off Friday and close below key supports that see focus now on

the 100.250-258 region where the 200-DMA is located. O/S studies are the key

concern for bears. Bulls now need a close above 100.280 to gain breathing room

and above the 55-DMA to shift focus back to 2018 highs.

     US 10-YR FUTURE TECHS: (M18) Bears Need Close Below 119-21+

*RES 4: 121-05  High Apr 4

*RES 3: 120-21+ Low Apr 11 now resistance

*RES 2: 120-19+ Daily Bear channel top off Feb high

*RES 1: 120-14+ 100-DMA

*PRICE: 120-08 @ 0430GMT

*SUP 1: 119-30+ 55-DMA

*SUP 2: 119-21+ Low May 28

*SUP 3: 119-10+ 21-DMA

*SUP 4: 118-31  Alternating daily support/resistance

*COMMENTARY: Gains continued Monday with the close above the 55-DMA adding

support for a case now targeting 121-05/12 where Apr highs are located. The

Bollinger top (120-06) is the key concern for bulls. Layers of support following

the contract higher is adding to confidence. Bears now need a close below

119-21+ to ease bullish pressure and below 118-31 to shift focus back to 2018

lows.

     US 10-YR YIELD TECHS: Bears Need Close Below 2.812

*RES 4: 3.030 - Hourly resistance May 23 

*RES 3: 2.996 - 21-DMA 

*RES 2: 2.955 - Low May 24 now resistance 

*RES 1: 2.906 - 55-DMA

*PRICE: 2.9049 @ 0430GMT

*SUP 1: 2.876 - High Apr 18 now support, Bollinger band base 

*SUP 2: 2.835 - 100-DMA 

*SUP 3: 2.812 - Hourly support Apr 12 

*SUP 4: 2.717 - Monthly Low Apr 2

*COMMENTARY: The correction lower from 2018 highs now sees the yield trading

below the 55-DMA with immediate focus now on 2.812-835 where the 100-DMA is

located. Bears now look for a close below 2.812 to confirm a break of the

100-DMA and focus on tests of 2.717 Apr lows. Layers of resistance accumulating

are weighing with bulls needing a close above 2.955 to gain breathing room and

above 3.050 to shift immediate focus back to 3.084-155.

     EUROSTOXX50 TECHS: 3464.34 Support Key

*RES 4: 3566.53 Low May 18 now resistance 

*RES 3: 3553.03 21-DMA 

*RES 2: 3540.03 High May 28

*RES 1: 3507.64 Hourly resistance May 28

*PREVIOUS CLOSE: 3482.64

*SUP 1: 3470.22 55-DMA 

*SUP 2: 3464.35 Low Apr 25 

*SUP 3: 3435.58 Low Apr 16 

*SUP 4: 3411.63 Low Apr 11

*COMMENTARY: The sell-off from the failures ahead of 3600.36 is gathering

momentum with immediate focus on 3464.35-3470.22 where the 55-DMA is located.

Bears now need a close below 3464.35 to shift initial focus to 3383.17-3399.97.

Layers of resistance remain with bulls now needing a close above 3540.03 to gain

breathing room and above 3566.53 to pressure 3600.36 once more.

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

[TOPICS: MTABLE]