The Bund has been in a downtrend since...>

BUND TECHS: The Bund has been in a downtrend since early September. This week

has seen prices rebound and retrace much of last week's sell-off. Technical

readings suggest the broader downtrend remains intact. If correct, we note that

futures have traded to an area of resistance that would ultimately be expected

to limit gains ahead of a resumption of the downtrend. The key features are:

- MA studies highlight a bearish sloping environment and continue to define the

trend as down. 

- Two key MA's in this study highlight a band of strong resistance that would be

expected to limit gains, the area between 171.00 - 171.90

- A clear bear channel exists, drawn off the Sep 3 high. The channel top

currently intersects at 172.26 and lies just above a band of congestion at

172.03. These levels also represent resistance.

- While near-term, futures can edge higher, the underlying trend remains bearish

with strong resistance seen above 171.00. A channel breakout is required to

alter the picture.

Chart: https://emedia.marketnews.com/mni_Bund_151119.pdf