HALISTER1: Bund Future May Drop to 21-DMA as Bull Momentum Wanes: Analysis

Bund Future May Drop to 21-DMA as Bull Momentum Wanes: Analysis

(Bloomberg) -- This year’s first bearish MACD cross on the generic bund future contract warns of a counter-trend decline toward 21-DMA at 163.46, Bloomberg Technical Analyst Sejul Gokal writes (see chart).
  • There’s scope for a deeper slide to 162.44, the 38.2% Fibonacci retracement of of Dec-Feb. rally
  • MACD yday executed a bearish crossover from elevated levels
    • Other momentum tools such as slow-stochastics are bearish and falling; remain far from oversold boundaries
  • Daily close below Bloomberg trender line, standing flat at 163.96, would reinforce tactical bear conviction
    • Risk to technical view is a daily close above 164.94 (Ichimoku conv. line) which would reinstate the upside pressure
  • NOTE: Bund March contract +18 ticks to 164.37
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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