March Bunds Continue Lower, Breaking 145.25 And Bottoming At 145.02

Published 12/13/2012, 02:11 AM
Bund
March Bunds continued lower as expected breaking 145.25 but bottomed at 145.02, just above good support at 144.96/94. We may still see a test of this support today and we watch for a good bounce from here and a possible small recovery in to the end of the week. However, stops on longs needed below 144.80 for a test of 144.67 next. Failure here is unlikely at this stage, but would take us to 114.48, possibly 144.27.

Resistance at 145.24/25 will need to be beaten for a stretch to 145.57/60 and a chance for profit taking for the day. A push through here should see 145.80/88 next and this will need to be beaten for a test of Monday’s high at 146.17 which is likely to cap if seen again this week. The July highs at 146.26 should be tough to beat if we continue the push, but any shorts here need a stop above 146.35 for a test of all-time highs at 146.89.

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