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(U4) Resistance Remains Intact

BUND TECHS
  • RES 4: 132.83 High May 16 and a bull trigger
  • RES 3: 132.18 High May 17
  • RES 2: 131.73 50-day EMA
  • RES 1: 131.58 High Jun 5
  • PRICE: 130.89 @ 05:34 BST Jun 7
  • SUP 1: 130.50 Low Jun 4
  • SUP 2: 129.83 Low Jun 1
  • SUP 3: 129.37 Low May 31 and the bear trigger
  • SUP 4: 129.00 round number support

The latest recovery in Bund futures from 129.37, the May 31 low, appears to be a correction - for now. The contract has breached the 20-day EMA and the next resistance to watch is 131.73, the 50-day EMA. A clear break of this average is required to suggest scope for a stronger recovery. For bears, a reversal lower would expose 129.37, the May 31 low, and a break of this level would resume the downtrend and open the 129.00 handle.

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