22 Jul 2013
Flash: Bunds remain bullish near-term – RBS
FXstreet.com (New York) - Technical Markets Strategist Dmytro Bondar at RBS analyzes the weekly outlook of Bunds.
Key quotes
According to Bondar, “Bunds remains bullish after breaking the 100-day moving average and 144.30 resistance region, as the recent price action formalized an inverse head and shoulders pattern with measuring targets of 144.93 and 146.12.”
Moreover, “The 20/5/5/3 slow stochastic remains positive despite being in the overbought region. Extreme readings of momentum oscillators should be ignored in a strong trend environment. Overall, major resistance levels stand at 144.30, 144.93, 145.45 and 146.12. A break below 143.00 makes the market bearish.”
“Bunds H&S follows a similar pattern formation on the 10-yr Treasuries chart, which provided the targets of 128-09 and 129-07. There are also resistance levels on the way up at 127-18 and 128-03+ (Fibonacci retracements from the Mar - May advance on a continuation chart with rollover adjustments).”
Key quotes
According to Bondar, “Bunds remains bullish after breaking the 100-day moving average and 144.30 resistance region, as the recent price action formalized an inverse head and shoulders pattern with measuring targets of 144.93 and 146.12.”
Moreover, “The 20/5/5/3 slow stochastic remains positive despite being in the overbought region. Extreme readings of momentum oscillators should be ignored in a strong trend environment. Overall, major resistance levels stand at 144.30, 144.93, 145.45 and 146.12. A break below 143.00 makes the market bearish.”
“Bunds H&S follows a similar pattern formation on the 10-yr Treasuries chart, which provided the targets of 128-09 and 129-07. There are also resistance levels on the way up at 127-18 and 128-03+ (Fibonacci retracements from the Mar - May advance on a continuation chart with rollover adjustments).”