Bunds traded the range again yesterday. We seem to be hugging the trend line resistance, if we do not manage to break out of this downward channel the stochastics will turn negative. Trend line resistance is now seen at 141.47 above here we now have 141.50 which is the high of the day. The hourly stochastics are looking neutral and the 240 mins stochastics look as though there is more to do on the upside although we meet 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.
Support is now seen at 141.11 which is the 23.6% fib level. If we manage to trade below the figure we will trade lower very
quickly to 140.60/62 which is 100% retracement from the 26th Sept and is the start of the gap, the daily charts have been signalling an overbought scenario since last week. 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