Bunds proved they were under pressure Friday by holding 138.04/05 on the topside which pushed the market lower to the short term 50% fib level of 134.24 with 136.19 posting the lows..
We are a little oversold short term so we may see a bounce early in the session, but if wee look at the med term daily charts we can see that the market is looking poised to trade lower after a correction.
Good resistance evident at 137/137.05 and if we stay below here we would assume this is the top and further falls likely. Hold shorts, keeping stops then above 137.19.
136.19/17 offers good support. If we lose this support we can see the market coming lower for 134.29 over the next few weeks.
Bobl:
Bobl held 123.42 and we saw the market slide lower for 122.63. We have not had a brilliant close, but short term we are oversold, thus leaving room for a correction early in the session.
We are looking limited on the topside however to 123.00 and if we can stay below here we will see weakness follow through once more with 122.63 to 122.46 then the targeted area. Here we cover shorts. Only re-sell a break below 122.46 as a
break below here will trigger slide to 122.24/18.
Now if we can climb above 123.00 we look again to 123.42 to hold the topside. We would be sellers prior this resistance and hold shorts unless we broke above 123.47.