Bund: Bearish Crab Formed, Potential Head & Shoulders Breakdown

2 days ago

BUND

The Bund has recently formed a bearish crab pattern on December 6th at 136.42, which triggered a pullback. It's worth noting that this level coincided with the monthly fractal resistance from August at 136.25, a key zone that could lead to a significant rejection. With the new support established at 134.38, we are now at a critical point where a head and shoulders pattern may start to develop. If this pattern completes, it could push Bund back to 132.46, marking a strong bearish move after a previous momentum surge.

Key Highlights:

• Bearish crab pattern formed on December 6th at 136.42, triggering pullback.
  
• Testing the monthly fractal resistance at 136.25, which could provide strong resistance.
  
• New support at 134.38 acting as the neckline for a potential head and shoulders pattern.
  
• Right shoulder of the pattern still forming, but a break below 134.38 could lead to further downside.
  
• If the head and shoulders pattern completes, Bund could drop to 132.46.