HALISTER1: Bunds May Extend Move Higher as MACD Issues New Bullish Signal

Bunds May Extend Move Higher as MACD Issues New Bullish Signal

(Bloomberg) -- Generic bund futures contract may keep nudging higher after momentum tools trigger a new ‘buy’ signal this week, Bloomberg technical analyst Sejul Gokal writes.
  • See chart here; RX1 +14 ticks to 161.75
  • Next resistance at 162.27-28 (38.2% Fibonacci, 21-DMA) and then 162.60-78 (June 30 high, 28 low)
    • 13-exponential MA now points up and was broken Tuesday at close
    • MACD histogram flips to positive, first time since May 18, to generate a bullish signal
  • 9-day RSI breaks down-trendline from mid-June, to also help rationalize lingering topside risks
  • Only a move above 163.50 would question the post-‘Sintra’ shift in trend narrative, to bearish
    • A close above here would mean bulls were able to reclaim all three major averages and recoup 62% of selloff from June 26
  • NOTE: Sejul Gokal is a FICC 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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