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(U4) Impulsive Sell-Off

BUND TECHS
  • RES 4: 133.21 High Jun 14 and the bull trigger
  • RES 3: 132.80 High Jun 25
  • RES 2: 132.24 High Jun 28
  • RES 1: 131.74 50-day EMA
  • PRICE: 130.57 @ 05:35 BST Jul 2
  • SUP 1: 130.28 76.4% retracement of the May 31 - Jun 14 rally
  • SUP 2: 129.52 Low Jun 10
  • SUP 3: 129.37 Low May 31 and the bear trigger
  • SUP 4: 129.00 Round number support

Bund futures traded lower last week and started this week’s session on a bearish note. The move lower Monday undermines a recent bullish theme and signals scope for a deeper retracement. The next support to watch is 130.28, a Fibonacci retracement. A break of this level would further strengthen a bearish threat. On the upside, initial firm resistance is at 132.24, the Jun 28 high. Clearance of this level would highlight a potential reversal.

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