FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “Bund prices had a good rally, though approached the top Bollinger band with 20/2/2 parameters and tested the 142.02 resistance level, being the 38.2% Fibonacci retracement from the June-July impulse wave on a continuation chart with rollover adjustments.”
As such, “the momentum is pretty neutral and the markets trades above its 50- and 100-day moving average, suggesting the move will most likely be a temporary correction rather than a turn to a bear market.” Bondar notes.
Overall, we favor selling rallies near the 141.80/142.00 region to the middle Bollinger band and 50-day MA at 140.92 onto 140.48 and possibly 140.00 levels. Conversely we recommend a stop at the break of the top band of 142.30.” he adds.
As such, “the momentum is pretty neutral and the markets trades above its 50- and 100-day moving average, suggesting the move will most likely be a temporary correction rather than a turn to a bear market.” Bondar notes.
Overall, we favor selling rallies near the 141.80/142.00 region to the middle Bollinger band and 50-day MA at 140.92 onto 140.48 and possibly 140.00 levels. Conversely we recommend a stop at the break of the top band of 142.30.” he adds.
