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(Z1) Bull Flag Formation

BUND TECHS
  • RES 4: 172.12 High Sep 14
  • RES 3: 171.95 61.8% retracement of the Aug - Nov sell-off
  • RES 2: 171.72 High Sep 23
  • RES 1: 171.44 High Nov 9 and the bull trigger
  • PRICE: 171.12 @ 05:17 GMT Nov 19
  • SUP 1: 170.06 Low Nov 5
  • SUP 2: 168.98 Low Nov 3
  • SUP 3: 167.69 Low Nov 1 and the bear trigger
  • SUP 4: 167.52 Low Mar 19 2020 (cont)

Bund futures are firmer but remain inside the recent range. This consolidation activity appears to be a bull flag reinforcing short-term bullish conditions. The recent breach of 169.83, Oct 27 high and clearance of the 50-day EMA suggest scope for an extension higher near-term. 171.14, 50.0% of the Aug - Nov sell-off has been breached and attention is on 171.95, the 76.4% level. On the downside, initial support to watch is unchanged at 170.06.

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