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(Z2) Corrective Bull Cycle Falters

BUND TECHS
  • RES 4: 145.37 High Sep 8
  • RES 3: 144.56 High Sep 12
  • RES 2: 143.68 38.2% retracement of the Aug 2 - Sep 28 bear leg
  • RES 1: 142.87 High Oct 4
  • PRICE: 139.44 @ 08:49 BST Oct 6
  • SUP 1: 138.05 Low Oct 3
  • SUP 2: 135.52 Sep 28 low and key support
  • SUP 3: 135.27 Low Mar 2012 (cont)
  • SUP 4: 134.76 4.382 proj of the Aug 2 - 12 - 15 price swing

The corrective cycle in Bund futures appears to have faltered, with prices remaining in a downtrend. This week’s gains have largely been reversed despite having cleared resistance around the 20-day EMA. Prices are now back below the mark at 141.62, returning as resistance. Key support and the bear trigger has been defined at 135.52, the Sep 28 low.

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