Halister News

(Bloomberg) -- Bund generic futures contract (currently tracking Sept. -- RXU7) has slipped below the rising trendline support from Dec. 8, the day of 2016’s last ECB meeting (see chart), Bloomberg Technical Analyst Sejul Gokal writes.

• Contract also trading below its 200-DMA at 162.97, first time since late May
• A close Wednesday below the trendline level at 162.92 could spark a selloff to 161.94, the last Fibonacci defense line of the March-April rally
• Should the trendline survive the challenge today and 200-DMA remain also intact, scope for sideways consolidation could intensify amid oversold unwind risk
  • Market still regarded to be range-bound and, as such, “oscillators’; may help anticipate tactical turns
  • 9-day RSI at 27; past 4 tests this year at 30 or below have marked bottoms
• Today’s focus points:
  • Resistance 163.24, 163.51, 163.91
  • Support 163.65-56, 162.48-44, 162.14, 161.97, 161.71
• NOTE: Schatz futures broke major support line that has underpinned market since 2014: click here for more

• NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.