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(Z3) Bearish Outlook

BUND TECHS
  • RES 4: 131.33 76.4% retracement of the Sep 1 - Oct 4 downleg
  • RES 3: 130.43 61.8% retracement of the Sep 1 - Oct 4 downleg
  • RES 2: 130.20 High Oct 12 and a bull trigger
  • RES 1: 129.12/129.51 High Oct 24 / 50-day EMA
  • PRICE: 127.79 @ 05:25 BST Oct 26
  • SUP 1: 127.18 Low Oct 23
  • SUP 2: 126.62 Low Oct 4 and the bear trigger
  • SUP 3: 126.00 Round number support
  • SUP 4: 125.49 0.764 proj of the Sep 1 - Oct 4 - Oct 12 price swing

Bund futures remain in a downtrend and short-term gains are considered corrective. The contract has pulled back from Tuesday’s high and is again trading below the 20-day EMA. Initial support to watch is 127.18, the Oct 23 low. A break would be a bearish development and expose the bear trigger at 126.62. On the upside, a resumption of gains would signal scope for a test of resistance at 129.51, the 50-day EMA.

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