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(U4) Pullback Considered Corrective

BUND TECHS
  • RES 4: 137.26 3.50 projection of the May 31 - Jun 5 - 1 price swing
  • RES 3: 136.99 3.382 projection of the May 31 - Jun 5 - 1 price swing
  • RES 2: 136.45 76.4% of the Dec 27 - May 31 downleg (cont)
  • RES 1: 136.28 High Aug 5
  • PRICE: 134.56 @ 05:48 BST Aug 7
  • SUP 1: 134.39 Low Aug 2
  • SUP 2: 133.25 20-day EMA
  • SUP 3: 132.45/131.62 50-day EMA / Low Jul 22 and a key support
  • SUP 4: 131.39 Low Jul 15

A bull cycle in Bund futures remains in play and the latest rally reinforces current conditions. 133.21, the Jun 14 high, was cleared last week, confirming a resumption of the uptrend. MA studies are in a bull-mode position, highlighting a rising trend. Sights are on 136.45, a Fibonacci retracement. The contract is off Monday’s high, an extension lower would allow an overbought condition to unwind. Firm support is 133.07, 20-day EMA.

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