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(Z2) Sell-on-Rallies Theme Persists

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: 138.46 @ 08:25 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 higher in Bund futures has concluded, retaining the sell-on-rallies theme across core fixed income markets. Prices remain in a broader downtrend for now. This week’s early gains have wholly reversed, turning focus to first support at 138.05, the Oct 3 low. Key support and the bear trigger has been defined at 135.52, the Sep 28 low. The 20-day EMA returns as resistance at 140.79.

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