HALISTER1: Bund Futures Carry Downside Impetus as Top Validated at Averages

Bund Futures Carry Downside Impetus as Top Validated at Averages

(Bloomberg) -- Bund futures may accelerate downside momentum after yesterday’s sharp drop validated the early week topping candle against 100/200-DMAs, Bloomberg technical analyst Sejul Gokal writes.
  • See chart here; contract now -66 ticks to 162.76
  • Tuesday’s bearish ‘shooting star’ candlestick against key averages (today at 164.03-164.12) and Sept. downtrend, received added confirmation from yesterday’s sharp down-move
    • Resistance at 163.42, 163.82
    • Support at 162.47-43, 161.83 and 161.10
  • 9-day RSI breaks November uptrend
  • MACD drifting toward zero line
  • While near-term bias is lower, the clearance of 162.47 swing low (Jan. 9) would heighten the negative risks and firmly reassert the broader downtrend
  • Treasuries sold off sharply yesterday, led by the front end after Yellen hinted at consensus for “a few” rate hikes this year: MORE
  • NOTE: Jan. 3, German 10Y Bund Yield Initiating New Leg Up Against Key Support
  • 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)

Tickers
2539Z GR (European Central Bank)

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