By Jason Sen
| Jan 29, 2013 06:38AM GMT |
Bund failed to make it to resistance at 142.62/64 and the 4 month up trend line and broke lower as feared to hit the target of 141.65. We bottomed here at 141.61, just keeping us above the 1 year trend line and 55 week moving average.
We are a little over sold in the short term and having held this strong support level there is a hope we can see a recovery today. Above 141.95 allows a test of 142.19 resistance. This may be all we can manage today but a break higher should target 142.52/60. It should be worth us exiting longs here and perhaps trying shorts with little chance of any further gains but stops needed above 142.85 for 143.12/22.
A break of good support at 141.65/60 is significant. Being a 1 year trend line. We should then see a test of the daily 61.8% Fibo- nacci support at 141.39/37. Watch for a low here today but go with a break looking for 141.14/08. This is a 50% correction of the rally from 2012 double bottom lows at 135.27 and as such should provide good support today.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.