German bond market report: Technical Analysis for Bund & Bobl 8th December

Published 12/08/2011, 08:58 AM
Updated 07/09/2023, 06:32 AM
Bunds:

Initial moves lower captured 134.55 but from there we saw the market push higher to 136.21.

Short term we have double topped at these higher levels and there is a risk this morning of weakness
down to 134.95.

Here we view to cover all shorts. We would advise going back into longs to here, but do not hold on
a break below 135.35. A loss of this level will see the sellers back into the market and they will be
looking to drive us lower for 134.80..The only was we can take of the downward pressure that is evident in the short term is to make a
break beyond 136.26. We would then be in quite a good position to trade higher with 136.75 then
the short term objective.Bobl:Bobl topped out at 123.64, leaving a short term double top in place. Short term stochastics are also
calling for weakness this session, and we expect the market to dip lower to a minimum target of
123.17.Here we would advise all long positions to be covered. We look to instate small longs here as well,
but will keep tight stops on these as a break below 123.00 would lead us lower to the 123.83/81 support.
Once more we aim to cover our shorts to here..We will hold longs at these lower levels and w will only reverse a break of 122.75. Resistance remains
in the 123.63/68 level. If after correction we can break above here we would go with it as
buyers would then be in a good position to trade higher with 123.98 then 124.15 the targeted area.

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