Bund Future May Drop to 21-DMA as Bull Momentum Wanes: Analysis
Source: BFW (Bloomberg First Word)
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(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).
Alert: HALISTER1- 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.
Source: BFW (Bloomberg First Word)
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UUID: 7947283