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(Z0) Approaching A Key Resistance Zone

BOBL TECHS
  • RES 4: 135.600 Low Nov 4
  • RES 3: 134.504 20-day EMA
  • RES 2: 135.482 Former trendline support drawn off the Sep 1 high
  • RES 1: 135.406 50-day EMA
  • PRICE: 135.350 @ 05:09 GMT Nov 16
  • SUP 1: 135.150 Low Nov 12
  • SUP 2: 135.000 Low Nov 11
  • SUP 3: 134.945 76.4% retracement of the Sep 1 - Nov 4 rally
  • SUP 4: 134.900 Low Sep 17

BOBL futures sold off sharply Nov 9 and this sell-off continues to highlight a bearish risk. The recovery off 135.000, Nov 11 low is considered a correction. The contract is holding onto recent gains however price remains below a band of resistance between 135.406/504 the 50- and 20-day EMA levels. A break is required to strengthen a bullish argument and would signal scope for stronger gains. A return lower would refocus attention on support at 173.66.

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