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Bunds reversed direction yesterday and came sharply lower to the first 23.6 short term fib level located at 134.08, reaching 134.06. we do now look oversold on both the short and med term charts and therefore if we can stay above 134.06 we can trade higher with a return to 135.38 looking likely.
Here we view to cover all longs. We would advise small shorts here, but keeping stops tight on a break above 135.46.
Failure to hold over 134.06 leads us lower with 133.88/83 then the targeted area. Here we view to cover all shorts…
Attempt small longs, once more keeping stops below 133.80 for 133.51.
Bobl:Bobl traded well..holding below 123.35 which pushed us lower to our 122.75/63 target reaching 122.70. All shorts have been covered. We have bounced off the short term 122.68.. 38% Fib level and if we can claw our way above 122.94 we should be able to reach higher towards the 123.35 resistance.
We would advise buyers to cover longs to here as this is quite good resistance. We would only then be buyers if we broke above this point. If we can manage to do this we are looking at the market coming higher for 123.63/68.
Now failure at 122.94 puts a more weaker tone on the market and leaves us liable to pullbacks towards the 122.75/68 support once more. Only a loss of 122.63 however would see selling pressure revived and we would then look to 122.39/37 as the targeted area.
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