Halister News

(Bloomberg) -- Bund futures contract (generic, roll-adjusted) registered a bearish key day reversal yesterday, which for now limits upside and sets up the prospect of a retracement within range; DeMark sell-setup count also warns at trend reversal risks; initial setback may target 163.33 support, Bloomberg Technical Analyst Sejul Gokal writes.

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• RX1: Yday’s key day reversal, right against the April roll- adjusted high of 164.60, and DeMark ’perfected’ sell setup completion skews the odds in favor of declines toward 163.33 and then 162.98; past candlestick reversal patterns at trend highs in Feb. and April carried good predictive value (see chart)
  • Daily View: Bearish w/caution (from May 6 bullish)
  • Daily Range: Current move 25 ticks vs 62 expected
  • Resistance: 164.49; 164.60; 165.10 (channel top)
  • Current price: 164.07
  • Support: 163.62; 163.12; 162.67

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