Bunds - oversold on the short term charts

Published 10/28/2011, 06:54 AM
Updated 07/09/2023, 06:32 AM

Bunds:

Bunds fell sharply lower yesterday and broke through some good support until reaching 133.15. There has been no retracement on the close...however we will encounter good support in the 133.02/132.05 region and we are desperately oversold on the short term charts, allowing therefore a move higher early in the session to ease this
oversold scenario...

134/25/30 offers such resistance and we would advise sellers to come back into the market on rallies to here, and hold unless above 134.65.
Med term charts are turning bearish, as you can see from the above chart, therefore we look to sell into strength looking for failure...

Below 132.90 sets off another wave of selling pressure, leaving 132.73 the initial target with potential for 132.40 quite quickly.

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