19 Feb 2015
Bunds eroding its short-term channel – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, gives the technical outlook for Bund futures, noting that bunds have started to erode the base of its short-term channel after failing again at the high at 159.54.
Key Quotes
“Bund futures have again failed ahead of the recent high at 159.54, and the market has now started to erode the base of its short term channel. This is regarded as the break down point to key support, which remains 156.56/156.25, the 2014-2015 uptrend and 55 day ma. A close below here will be needed to negate the long term bull move (this is not favoured at this stage).”
“We have not yet seen a close below the short term uptrend, which today intersects at 158.43.”
“Above the 159.54 recent high lies the top of its 7 year channel – this is now located at 159.96. Above the 7 year channel at 159.96 we have the top of its short term channel is at 161.01.”
“Above 161.01 lie the point and figure targets on the 60 and 240 minute charts at 163.40/80 and a Fibonacci extension at 163.87.”
“Shorter term (1-3 weeks): struggling at 159.54”
Key Quotes
“Bund futures have again failed ahead of the recent high at 159.54, and the market has now started to erode the base of its short term channel. This is regarded as the break down point to key support, which remains 156.56/156.25, the 2014-2015 uptrend and 55 day ma. A close below here will be needed to negate the long term bull move (this is not favoured at this stage).”
“We have not yet seen a close below the short term uptrend, which today intersects at 158.43.”
“Above the 159.54 recent high lies the top of its 7 year channel – this is now located at 159.96. Above the 7 year channel at 159.96 we have the top of its short term channel is at 161.01.”
“Above 161.01 lie the point and figure targets on the 60 and 240 minute charts at 163.40/80 and a Fibonacci extension at 163.87.”
“Shorter term (1-3 weeks): struggling at 159.54”