Bunds traded the range yesterday we have resistance at 141.51 from a downward trend line. We made a high of 141.57 just
short of our trend line resistance at 141.59 the hourly stochastics are looking positive so we could see buyers first thing but will encounter strong resistance at 141.80 the 9 week MA, a break here will pave the way for 141.95 which is a double top on the hourlys and 100% retracement from the 17th Sept.
The 240 min stochastics are neutral, however the daily’s are overbought, so we look to sell into strength unless the Euro comes under pressure.
Support is now seen at 141.11 and then 141.05/06 a break here will take us down to 140.97 which would fill the opening gap from Friday, 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