Tuesday, Mar 25, 2014
By Francis Bray, CFTe MSTA
A DOW JONES NEWSWIRES COLUMN
LONDON (Dow Jones)--Rolling 24-hour chart levels:
Futures: BUND GILT EURIBOR SHORT STG
Jun Jun Dec Dec
Previous Close 143.12 109.86 99.670 99.245
3 Day Trend Range Range Bearish Range
Weekly Trend Range Range Bearish Range
3rd Resistance 143.97 110.89 99.725 99.300
2nd Resistance 143.57 110.32 99.710 99.280
1st Resistance 143.24 110.03 99.680 99.250
Pivot* 142.84 109.64 99.662 99.238
1st Support 142.93 109.73 99.640 99.220
2nd Support 142.79 109.58 99.625 99.190
3rd Support 142.69 109.47 99.615 99.160
Intraday BUND: Monday's strength has upgraded the recovery from last Thursday's seven-day low at 142.10, and resistance at 143.24 is targeted. The rally is consolidating the sharp decline from the Mar. 14 contract high at 143.97, and the next target above 143.24 lies at 143.57. A plethora of single prints on Monday's Market Profile chart indicates limited downside risk on Tuesday, all defending strong support at 142.37/142.43.
Weekly chart BUND trend: Range.
Intraday GILT: Monday's strength brings the Mar. 14 contract high at 110.32 back into the picture. Closure of the downside gap at 109.66 strengthens the Mar. 20 low at 108.88, and the 110 area is now the last line of defence protecting the 110.32 peak. Strong support lies at 109.35, which is protected by 109.58 and 109.47.
Weekly chart GILT trend: Range.
Intraday EURIBOR December 2014: The recovery from Monday's low at 99.640 is hampered by resistance at 99.680 and 99.710. The overall tone remains strongly bearish, and last Friday's downward breach of 99.655 created the signal for downside risk to 99.615. That broader bear threat to 99.615 will remain valid while projected resistance at 99.710 caps the upside. Failure to test resistance at 99.680 would prompt a sharp return to the 99.640 low, threatening 99.615.
Weekly chart EURIBOR trend: Bearish.
Intraday SHORT STERLING December 2014: Remains trapped in a range between 99.220 and 99.280. The five-week rectangle trading range is protecting the Feb. 14 reaction low at 99.160, and a push above 99.250 would re-open the range highs at 99.280. But strong resistance at 99.300 and 99.310 looms overhead. That said, only a concerted wave of weakness would manage to force a break below 99.220, bringing the Feb. 14 low at 99.160 into focus and leaving the mid-March highs at 99.280 as a pending bull failure.
Weekly chart SHORT STG trend: Range.
* The pivot is the sum of the high, low and close divided by 3.
For more technical analysis see: Dow Jones Newswires, N/DJTA; Bloomberg, NI DJTA; and Reuters key word search "INSI-DJN"
By Francis Bray; Dow Jones Newswires; +44 (0)207 842 9249; francis.bray@dowjones.com
Francis Bray is Dow Jones' chief technical analyst for Europe, and has worked as a technical analyst and trader for 20 years in London, Barcelona and Guernsey.
Data provided by CQG International Ltd.
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(END) Dow Jones Newswires
25-03-14 0712GMT
