Yesterday Bunds gapped up on the open and traded up through resistance at 141.13 and quickly traded above 141.28 which was the med term 50% fib level to make a high of 141.45 this was on the back of rumours of Greece struggling, and no chance of changing any of their bail out conditions. Resistance is now seen at 141.59 which is a rising trendline, then 141.80 the 9 week MA, 141.95 which is a double top on the hourlys and 100% retracement from the 17th Sept.
The 60 min stochastics are now indicating an overbought scenario along with the daily charts with the 240 mins looking neutral.
Support is now seen at 141.28 the 50% fib level a break here would take us lower to 141.19 and then down to fill the gap from yesterdays opening 141.06 to 140.97 this gives us our next target of 140.60/62 which is 100% retracement from the 26th Sept and is the start of the gap. A break here could quite easily take us lower to 140.31 which would then fill the rollover gap.
The article was first published by CharmerCharts