Bunds have made a small inverse Head and Shoulder pattern on the 60 min charts. Now this pattern should provoke the buyers into making a move to the topside.. We have the neckline located in the 134.30 point and a break above here would at least see 134.50/54 but the potential on the topside will reach to 136.05 which would be the measured target from this pattern.
Now obviously this all depends of whether we can reach 134.50/54 and break it.. Technically there is no reason why we should not be able to make the break higher...we are oversold on the med term charts and possibly now we have made this little pattern on the 60 min charts we will be able to make our way higher.
Now if we fail we look for weakness to come back towards 133.42/36. Cover shorts to here. We need to be buyers on weakness and we will hold unless we break the 133.29 support.
Bobl:Bobl reached higher yesterday and came to the short term 61.8 Fib level of 122.84, reaching 122.86. Slightly overbought, but the market does actually look in a good position to trade higher now especially from the med term charts, where you can see we are just beginning to turn positive.
We would now therefore continue to buy dips. We would expect the downside now to be contained y 122.37 and this is where we would come back into the market once more…
Obviously we have the 122.84/86 resistance to negotiate, but feel this will break sooner rather than ater and that we can come forward now and attain 123.00 quite quickly with potential for 123.35 over the next 2 sessions.
If we lose 122.37 we should hold 122.08/121.93 and we are buyers within this band of support.