(Z2) Corrective Gains Extend

• RES 4: 142.87 High Oct 4 and a key reversal point
• RES 3: 141.23 50-day EMA
• RES 2: 140.13 High Oct 6
• RES 1: 138.81 High Oct 26
• PRICE: 138.57 @ 08:20 BST Oct 26
• SUP 1: 136.46/134.02 Low Oct 25 / 21 and the bear trigger
• SUP 2: 133.74 0.618 proj of the Aug 2 - 12 - 15 price swing
• SUP 3: 132.89 Low Oct 28 2011
• SUP 4: 132.61 0.764 proj of the Aug 2 - 12 - 15 price swing

Bund futures are firmer again early Wednesday, extending the recovery from Friday’s low of 134.02. Short-term gains are considered corrective, but the outlook is improving on the break of 138.52, the Oct 14 high. Strength north of here would suggest scope for a stronger bounce, potentially opening up the 50-day EMA, at 141.23. A reversal lower and a break of 134.02 would mark the end of the corrective cycle and confirm a resumption of the primary downtrend.