Bunds opened lower, but reversed direction and came sharply higher—breaking to 136.83. This has
made the short term charts overbought and therefore we look for weakness leading down to
136.21/17 early in the session.If buyers fail to make a stand at the 136.14 area we should see further selling pressure leading to
135.53/44 which should hold this attempt. It would alleviate the overbought conditions on the
short term charts and allow buyers back in the market. Now if we fail at 135.40 look for yesterdays lows once more.
Only a break above 136.83 would negate the immediate bearish view, leaving the way clear for another
test of 137.12 highs. Cover longs to here and re-sell.
Bobl held the downside at 123.40 then rebounded to go back and visit 124.14. Now the previous
high was 124.15, therefore this is the resistance we would be looking to this morning.Failure to break this barrier leaves the Double Top formation intact on the daily charts and we should
trade back down to the 123.44/41 support. We cover shorts here, go long, keeping stops below
123.34.If we do break 123.15 and the move is sustained, not just stops going off we look for the market to
come higher to 124.26. We cover longs to here. We should only instate further longs on a clear
break of 124.40.