By Jason Sen
| Jan 29, 2013 06:34AM GMT |
March Bobl broke 125.60 to test our second downside target of 125.20/19 and we bottomed just below here at 125.16. With no sign of strength or important longer term support at this stage we look to sell in to any bounce with 125.53 and then 125.76/80 likely to be a struggle. If we break yesterday’s high look for 125.94 with a selling opportunity at 126.13/19.
Support at yesterday’s lows in the 125.19/16 band but a break is a very strong possibility to target 124.90. Now this is more important being a 23.6% correction of the rally from the 2011 low at 113.79. It is not worth holding shorts any further even though the market is not severely over sold, as there is a danger of a sharp bounce from here after 5 consecutive weeks of losses so far. Further support below here from October lows at 124.81/79 but below here we risk a further collapse to 124.68/67 on the way to 124.48/44.
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